As promised at the Lieb at Law, P.C. Foreclosure Filibuster class last night in Bethpage, please find below a sample distressed property agreement. This sample is intended for use by individuals, corporations, partnerships, LLCs or other business entities that, directly or indirectly, solicit or undertake employment to provide consulting services to a homeowner for compensation or promise of compensation with respect to a distressed home loan or a potential loss of the home for nonpayment of taxes. It is not necessary that attorneys and other persons/entities use the same (please see N.Y.RPP.LAW § 265-b: NY Code - Section 265-B: Distressed property consulting contracts). Please be aware that the two (2) "Notice of Cancellation" provisions contained below are there by design. It is necessary, under the above law, to attach two (2) copies of the Notice of Cancellation provision to any sample distressed property agreement. Therefore, we've provided the same for your use. Here it is:
WHEREAS, “Homeowner” and Distressed Property Consulting Firm, who’s primary place of business is located at _____________________and telephone number is ________and fax number is________, are parties to a Consulting Agreement dated as of _____,__,201_; and;
WHEREAS, the Consulting Agreement provides the Services to be delivered by Distressed Property Consulting Firm (‘Consultant”) or such other persons as Consulting Firm may designate.
WHEREAS, the scope of this agreement entails that the Consultant provide services to help to achieve any of the following for homeowner:
(i) stop, enjoin, delay, void, set aside, annul, stay or postpone a
foreclosure filing, a foreclosure sale or the loss of a home for
nonpayment of taxes;
(ii) obtain forbearance from any servicer, beneficiary or mortgagee or
relief with respect to the potential loss of the home for nonpayment of
taxes;
(iii) assist the homeowner to exercise a right of reinstatement or
similar right provided in the mortgage documents or any law or to
refinance a distressed home loan;
(iv) obtain any extension of the period within which the homeowner may
reinstate or otherwise restore his or her rights with respect to the
property;
(v) obtain a waiver of an acceleration clause contained in any
promissory note or contract secured by a mortgage on a property in
foreclosure;
(vi) assist the homeowner to obtain a loan or advance of funds;
(vii) assist the homeowner in answering or responding to a summons and
complaint, or otherwise providing information regarding the foreclosure
complaint and process;
(viii) avoid or ameliorate the impairment of the homeowner's credit
resulting from the commencement of a foreclosure proceeding or tax sale;
or
(ix) save the homeowner's property from foreclosure or loss for
non-payment of taxes.
NOW, THEREFORE, in consideration of the foregoing premises and the covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto intending to be legally bound, hereby agree as follows:
(a) As consideration for Consulting Firm’s agreement to enter into this agreement and rendering the Services, homeowner shall pay to Consulting Firm at the conclusion of the Consulting Firm’s services a fee of $_______; with no payments being charged or accepted at any time prior to the completion of consultants services. Terms of payment shall be ____________.
(b) Except as specifically amended hereby, the Consulting Agreement shall continue in full force and effect unmodified and the parties hereby reaffirm the same.
IN WITNESS WHEREOF, this agreement has been executed by and on behalf of the parties hereto to become effective as of the day and year first above written.
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| HOMEOWNER. | ||
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| By: | ||
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| _______________________ Dated:___________ Homeowner’s name typed Homeowner
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| Distressed Property Consulting Firm. | ||
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| By: | ||
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| _______________________ Dated:____________ Consultant’s name typed Sworn to and subscribed before me this _____day of ____2010 | ||
Sworn to and subscribed
before me this _____day of ____2010
Notary Public
NOTICE REQUIRED BY NEW YORK LAW
You may cancel this contract, without any penalty or obligation, at
Any time before midnight of _____ (fifth business day after
execution).
(the "Consultant") or anyone working for the Consultant may not take any
money from you or ask you for money until the Consultant has
completely finished doing everything this Contract says the Consultant will
do.
You should consider consulting an attorney or a government-approved
housing counselor before signing any legal document concerning your
home. It is advisable that you find your own attorney, and not consult
with an attorney recommended or provided to you by the Consultant. A
list of housing counselors may be found on the website of the New York
State Banking Department, www.banking.state.ny.us or by calling the
Banking Department toll-free at 1-877-BANK-NYS (1-877-226-5697). The
law requires that this contract contain the entire agreement between you and
the Consultant. You should not rely upon any other written or oral
agreement or promise."
NOTICE OF CANCELLATION
Note: You may cancel this contract, without any penalty or obligation,
at any time before midnight of ______. (Enter date)
To cancel this contract, sign and date both copies of this cancellation
notice and personally deliver one copy or send it by facsimile, United
States mail, or an established commercial letter delivery service,
indicating cancellation to the Distressed Property Consultant at one of
the following:
Name of Contractor_________________________
Street Address_____________________________
City, State, Zip___________________________
Facsimile:_________________________________
I hereby cancel this transaction.
Name of Homeowner:_________________________
Signature of Homeowner:____________________
Date:______________________________________
NOTICE OF CANCELLATION
Note: You may cancel this contract, without any penalty or obligation,
at any time before midnight of ______. (Enter date)
To cancel this contract, sign and date both copies of this cancellation
notice and personally deliver one copy or send it by facsimile, United
States mail, or an established commercial letter delivery service,
indicating cancellation to the Distressed Property Consultant at one of
the following:
Name of Contractor_________________________
Street Address_____________________________
City, State, Zip___________________________
Facsimile:_________________________________
I hereby cancel this transaction.
Name of Homeowner:_________________________
Signature of Homeowner:____________________
Date:______________________________________
