§ 5-79-1 - Definitions.
SECTION 5-79-1
§ 5-79-1 Definitions. – As used in this chapter:
(1) "Contract" means any agreement, or any term in anyagreement, between a foreclosure consultant and an owner for the rendition ofany services as defined in subdivision (8).
(2) "Foreclosure consultant" means any person who, directlyor indirectly, makes any solicitation, representation, or offer to any owner toperform for compensation or who, for compensation, performs any service whichthe person in any manner represents will in any manner do any of the following:
(i) Stop or postpone the foreclosure sale;
(ii) Obtain any forbearance from any beneficiary or mortgagee;
(iii) Assist the owner to exercise the right of redemptionprovided in § 34-23-2;
(iv) Obtain any extension of the period within which theowner may reinstate the owner's obligation;
(v) Obtain any waiver of an acceleration clause contained inany promissory note or contract secured by a mortgage on a residence inforeclosure or contained in the mortgage;
(vi) Assist the owner in foreclosure or loan default toobtain a loan or advance of funds;
(vii) Avoid or ameliorate the impairment of the owner'scredit resulting from the recording of a notice of default or the conduct of aforeclosure sale; or
(viii) Save the owner's residence from foreclosure.
(3) A foreclosure consultant does not include any of thefollowing:
(i) A person licensed to practice law in this state when theperson renders service in the course of his or her practice as anattorney-at-law;
(ii) A person licensed as a credit counselor under chapter19-14.7, when the person is acting as a credit counselor in accordance with thechapter;
(iii) A person licensed as a real estate broker orsalesperson under chapter 5-20.5 when the person engages in acts whoseperformance requires licensure under that chapter;
(iv) A person licensed as an accountant under chapter 5-3.1when the person is acting in any capacity for which the person is licensedunder those provisions;
(v) A person or the person's authorized agent acting underthe express authority or written approval of the department of housing andurban development or other department or agency of the United States or thisstate to provide services;
(vi) A person who holds or is owed an obligation secured by alien on any residence in foreclosure when the person performs services inconnection with this obligation or lien of the obligation or lien did not ariseas the result of or as part of a proposed foreclosure reconveyance;
(vii) Any person or entity doing business under any law ofthis state, or of the United States relating to banks, trust companies, savingsand loan associations, industrial loan and thrift companies, regulated lenders,credit unions, insurance companies, or a mortgagee which is a United StatesDepartment of Housing and Urban Development approved mortgagee and anysubsidiary or affiliate of these persons or entities, and any agent or employeeof these persons or entities while engaged in the business of these persons orentities;
(viii) A person licensed as a residential mortgage originatoror servicer pursuant to chapter 19-14, when acting under the authority of thatlicense or a foreclosure purchaser as defined in § 5-79-10;
(ix) A nonprofit agency or organization that offerscounseling or advice to an owner of a home in foreclosure or loan default ifthey do not contract for services with for-profit lenders or foreclosurepurchasers; and
(x) A judgment creditor of the owner, to the extent that thejudgment creditor's claim accrued prior to the personal service of theforeclosure notice required by § 34-27-4, but excluding a person whopurchased the claim after such personal service.
(4) "Foreclosure reconveyance" means a transaction involving:
(i) The transfer of title to real property by a foreclosedhomeowner during a foreclosure proceeding, either by transfer of interest fromthe foreclosed homeowner or by creation of a mortgage or lien or encumbranceduring the foreclosure process that allows the acquirer to obtain title to theproperty by redeeming the property as a junior lienholder; and
(ii) The subsequent conveyance, or promise of a subsequentconveyance, of an interest back to the foreclosed homeowner by the acquirer ora person acting in participation with the acquirer that allows the foreclosedhomeowner to possess the real property following the completion of theforeclosure proceeding, which interest includes, but is not limited to, aninterest in a contract for deed, purchase agreement, option to purchase, orlease.
(5) "Owner" means the record owner of the residential realproperty in foreclosure at the time the notice of pendency was recorded, or thesummons and complaint served.
(6) "Person" means any individual, partnership, corporation,limited liability company, association, or other group, however organized.
(7) "Residence in foreclosure" means residential realproperty consisting of one to four (4) family dwelling units, one of which theowner occupies as his or her principal place of residence, and against whichthere is an outstanding notice of pendency of foreclosure, pursuant to §34-27-4, or against which a summons and complaint has been served under §34- 27-1.
(8) "Service" means and includes, but is not limited to, anyof the following activities:
(i) Debt, budget or financial counseling of any type;
(ii) Receiving money for the purpose of distributing it tocreditors in payment or partial payment of any obligation secured by a lien ona residence in foreclosure;
(iii) Contacting creditors on behalf of an owner of aresidence in foreclosure;
(iv) Arranging or attempting to arrange for an extension ofthe period within which the owner of a residence in foreclosure may cure theowner's default and reinstate his or her obligation pursuant to § 34-23-3;
(v) Arranging or attempting to arrange for any delay orpostponements of the time of sale of the residence in foreclosure;
(vi) Advising the filing of any document or assisting in anymanner in the preparation of any document for filing with any bankruptcy court;or
(vii) Giving any advise [advice], explanation, orinstruction to an owner of a residence in foreclosure, which in any mannerrelates to the cure of a default in or the reinstatement of an obligationsecured by a lien of the residence in foreclosure, the full satisfaction ofthat obligation, or the postponement or avoidance of a sale of a residence inforeclosure, pursuant to a power of sale contained in any mortgage.