DE SB42

Amends foreclosure consultant regulations by replacing "residence in foreclosure" with "residence in default" (defined as property with mortgage 60+ days in default) throughout Title 6 sections 402B, 403B, 413B, and 415B.

Creates new Chapter 24C establishing registration and regulatory framework for mortgage loan modification services providers, requiring $1,000 non-refundable registration fee and $100,000 corporate surety bond.

Requires written contracts with mortgage modification providers that must be provided 24 hours before signing, printed in 12-point font, and allow cancellation at any time without penalty.

Prohibits providers from misrepresenting affiliation with government, lenders, or housing counselors; claiming homeowners cannot contact lenders; or collecting fees before written loan modification agreement is executed.

Grants Attorney General enforcement authority with civil penalties up to $10,000 per violation ($20,000 for violations against elderly or disabled persons), with each day of willful violation counted separately; becomes effective 6 months after enactment.