Consider this hypothetical. Your neighbor is facing foreclosure. His house looks like a great investment opportunity but, unfortunately, you don’t have the money to make a deal. However, a friend has told you he is hoping to invest some of a recent inheritance in foreclosed homes. You offer to connect your neighbor and friend to work a deal.

You may have just become a "regulated foreclosure consultant." In California, a foreclosure consultant is any person who offers or performs services for compensation to “Save the owner’s residence from foreclosure.” Exempted from the law are attorneys, junior lien holders and lenders. Real estate agents can act as foreclosure consultant if they are bonded, but I am unaware of any surety that will write such a bond.California Civil Code 2945 lays out the legal requirements for those wishing to be foreclosure consultants. Failure to comply with its rules can result in a fine of not more than ten thousand dollars or imprisonment for not more than one year. Other jurisdictions may have similar rules; if you’re “consulting” you should check out your state’s laws.