The Home Equity Theft Prevention Act is poised to eliminate the deed-in-lieu as a settlement tool during the foreclosure process. With respect to the purchase of one- to four-family residences from a seller who is either in foreclosure or in default of his mortgage loan, the Act prohibits mortgage lenders from making loans to "equity purchasers" if that lender has knowledge that the equity purchaser has not complied with numerous statutory requirements.
Read more