Nationwide Associates Inc.

Company literature states independent contractors will assist property owners with foreclosure by negotiating a forbearance with the lender, purchasing such properties before the trustee sale, and occasionally representing the company as a bidder at trustee sales. Although company literature states a real estate license is not required by the independent contractors, the California Department of Real Estate has advised us that a license is needed unless the property is purchased for the account of the independent contractor. Licensing requirements vary from state to state. Company literature also contains representations that any loss sustained by the lender after a foreclosure will be taxable as ordinary income to the property owner. This statement is not necessarily correct. In fact, in most cases, there is no taxable gain realized after a foreclosure. You should consult with a tax advisor on any questions relating to tax liability. Further, most mortgage companies will only negotiate a new payment arrangement or forbearance with the borrower.