Frequently Asked Questions

Can an unrepresented buyer purchase a residence in default for himself or for a family member?

It depends. If the unrepresented buyer is acting as a foreclosure consultant, he is prohibited from acquiring an interest in a residence in default from a homeowner with whom the foreclosure consultant has contracted either for himself or for a family member. [§7-307(8)]
If the unrepresented buyer is not acting as a foreclosure consultant, then he may, provided he gives the homeowner the required 5-day right of contract rescission, and does not represent directly or indirectly that:
The purchaser is acting as an advisor or a consultant, or in any other manner represent that the purchaser is acting on behalf of the homeowner;
The purchaser has certification or licensure that the purchaser does not have;
The purchaser is assisting the homeowner to “save the house” or use a substantially similar phrase; or
The purchaser is assisting the homeowner in preventing a foreclosure if the result of the transaction is that the homeowner will no longer own the property. [§7-312(1)]
Additionally, the purchaser may not make any other statements, directly or by implication, or engage in any other conduct that is false, deceptive, or misleading, or that has the likelihood to cause confusion or misunderstanding, including statements regarding the value of the residence in default, the amount of proceeds the homeowner will receive after a sale or transfer, any contract term, or the homeowner’s rights or obligations incident to or arising out of the sale or transfer. [§7-312(3)]