Pardoning the mixed metaphor of the title, readers may be aware that the Home Equity Theft Prevention Act1 created serious questions about the viability of a deed in lieu as a settlement methodology in mortgage foreclosure cases. But then comes a May 10, 2011 advise of the State of New York Banking Department (http://www.banking.state.ny.us/il110510.htm), which opines that the act does not apply to the deed in lieu—but, it must be given to the holder of a defaulted mortgage who would otherwise have been entitled to foreclose, and the value of the property must be less than the mortgage.
While this may appear on the surface to dispose of the disquietude about the act encompassing the deed in lieu, concern still lurks.
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