Home Equity Theft Prevention Act Seriously Hurt Homeowners In Foreclosure By Scaring Away Investors – The Law Of Unintended Consequences

In the current foreclosure crisis, I am reminded of this article regarding the Home Equity Theft Prevention Act. I knew the New York Legislature had good intentions but they very badly hurt the people they were trying to protect. Most investors have been hesitant to buy property as part of a foreclosure bailout because of the law, as well as the restictions on available financing and the decline in property values.