The State of New Jersey
NJ Department of Banking and Insurance

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Frequently Asked Questions - Foreclosure Consultant

1. How long does it take to process an application?

A properly completed application will be processed within 60 days of receipt.

2. What is required to obtain the license?
All information as to how to apply for a license is contained in the instructions

When does the license expire?
All licenses that are initially issued anytime between July 1, 2017 and June 30, 2019 will expire on June 30, 2019.  Thereafter, all licenses will be subject to renewal for a 2-year term beginning on July 1 of an odd year and expiring on June 30 of the following odd year, i.e. July 1, 2019 through June 30, 2021.

4. Who needs to be licensed as a foreclosure consultant?
Any person, located out-of-State or within the State, who, directly or indirectly, for compensation from an owner, makes any solicitation, representation, or offer to perform, or who performs, any distressed property service that the person represents will in any manner do any of the following in relation to the owner's distressed property:

  (a) prevent or postpone the foreclosure sale of the property;
  (b) obtain any forbearance from any mortgagee;
  (c) assist the owner in exercising any right of reinstatement or right of redemption;
  (d) obtain any extension of the period within which the owner may reinstate the owner's rights with respect to the property;
  (e) obtain any waiver of an acceleration clause contained in any promissory note, contract, or mortgage evidencing or securing a debt in relation to the property;
  (f) assist the owner in obtaining a loan or advance of funds to pay off the promissory note, contract, or mortgage evidencing or securing a debt in relation to the property; or
  (g) avoid or ameliorate the impairment of the owner's credit resulting from default on the promissory note, contract, or mortgage, or the conduct of a foreclosure sale or offer to repair the owner's credit.

5. Are there any exemptions to the licensure requirements?
Yes. Pursuant to N.J.S.A. 46:10B-54 and N.J.A.C. 3:18-2.1 foreclosure consultants shall not include the following:

  (a) a housing counseling agency contracted by the United States Department of Housing and Urban Development to provide counseling;
  (b) a person who holds or is owed an obligation secured by a lien on any distressed property in situations in which the person performs services in connection with the obligation or lien, provided the obligation or lien did not arise as the result of, or as part of, a proposed distressed property conditional conveyance or a distressed property conveyance;
  (c) a licensed attorney who negotiates the terms of a distressed property conveyance on behalf of a client as an ancillary matter to the attorney’s representation of the client, unless the attorney receives, directly or indirectly, any compensation, benefit, or gain for the attorney’s services from a foreclosure consultant business licensee or any individual or entity who should be licensed as a foreclosure consultant;
  (d) a nonprofit, charitable entity qualified pursuant to section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. s.501(c)(3)), which is licensed pursuant to P.L.1979, c. 16 (C.17:16G-1 et seq.);
  (e) a municipality which has a tax lien on distressed property;
  (f) an assignee or a purchaser of a municipal tax lien from a tax sale;
  (g) a sponsor which is certified by the Commissioner of Community Affairs to participate in the “New Jersey Housing Assistance and Recovery Program” established pursuant to sections 8 through 14 of P.L.2008, c. 127 (C.55:14K-88 et seq.);
  (h) a bank, savings bank, savings and loan association, credit union, or other federally insured financial institution, or insurance company, or affiliate or subsidiary thereof, organized, chartered, licensed, or holding a certificate of authority to do business under the laws of this State or any other state or under the laws of the United States;
  (i) a person licensed as a real estate broker, broker-salesperson, or salesperson pursuant to R.S.45:15-1 et seq., while acting under the authority of that license;
  (j) a person licensed as a title insurance producer pursuant to the “New Jersey Insurance Producer Licensing Act of 2001,” P.L.2001, c. 210 (C.17:22A-26 et seq.) while acting under the authority of that license or conducting the business of title insurance pursuant to P.L.1975, c. 106 (C.17:46B-1 et seq.);
  (k) a mediator licensed duly authorized pursuant to and acting under the authority of the Judiciary's Foreclosure Mediation Program; or
  (l) a person licensed pursuant to the “New Jersey Residential Mortgage Lending Act,”   P.L.2009, c. 53 (C.17:11C-51 et seq.), while acting under the authority of that license.

6. How can I get a copy of the law governing this license?
See Frequently Requested Documents, which lists the cost of copies of the statutes and send remittance with request to the address provided.

7. Can I pay the application fee by credit card?
Currently, credit card payments are not permissible.

8. What if my application is withdrawn or denied?
All fees paid are non-refundable.

9. What is the procedure if I change my address?
Complete the Request for Change of Legal Name or Address form found on our web site.

10. What is the procedure if I change the business name or add an alternate name?
Complete the Request for Change of Legal Name or Address form found on our web site. Enclose a copy of the amended Certificate of Incorporation, if a corporation; a copy of the amended Certificate of Formation, if a limited liability company; a copy of the amended or new trade name certificate, if a partnership or sole proprietorship; a copy of amended Certificate of Authority to do business in New Jersey, if a foreign corporation; or a copy of the Registration of Alternate Name, if adding a "doing business as" name.

11. What must I do if my license is lost or destroyed?
Please e-mail to request a license reprint.

12. When do I file the annual report?
All annual reports are due by May 1. They can be filed online.

13. How do I renew my license?
Renewal instructions will be sent to you on or before April 1 of the year in which your license expires.

14. What must I do if I go out of business?
Please contact requesting information about the surrender procedure.

15. What if I change the legal style of the business?
This change is treated as a name change initially.  We require that the company file a confirmation of the company’s Federal Employment Identification Number (“FEIN”) from the Internal Revenue Service within 30 days of the legal style change.  The company will be required to submit a new application if the FEIN changes.

16. Is the license transferrable?
No.  A license may not be transferred from one entity to another.

17. How can I contact DOBI if I have a question that was not answered above?
You can put your question in writing and fax it to us at (609) 633-0822 or by e-mail to

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New Jersey Department of Banking and Insurance