Legal Question in Real Estate Law in California

A law degree or at minimum a broker's license.

You actually need more than a law degree, you need to be admitted to practice law with the State Bar. Being a licensed attorney is an exception the requirement that you have a real estate broker's license, provided that the attorney is providing services to his/ her client.

A real estate broker's license would also allow you to negotiate with mortgage lenders, or you could obtain a license as a residential mortgage lender. (Financial Code, section 50000, et seq.)

I think the previous answers are not totally correct. While it is much easier to qualify to do loan modification or foreclosure consultant work if you are licensed to practice law, are a licensed real-estate broker, or have a financial lender's license, the law also recognizes a "foreclosure consultant" and also a "person who negotiates of offers to perform mortgage loan modifications for [a] fee." The former is covered by Civil Code sections 2945 to 2945.11, and the latter by sections 2944.6 and 2944.7. I would say there is probably about 97% overlap between the two, so essentially an individual proposing to be a third-party negotiator would need to know and comply with both sets of laws. The laws are quite tough and compliance requires forethought and diligence.