With tortoise-like pace, states are considering, then enacting legislation to curtail predatory lending,  and deceptive realty practices. California has strict criteria governing how "foreclosure consultants" conduct business with financially distressed homeowners.  Maryland's new laws and document recording systems seek to limit the extent to which speculative investors make front end profits at the expense of a distressed and possibly ill-informed seller.  On February 1, 2007, New York enacted the Home Equity Theft Protection Act.

The key to the Act is to retroactively protect a homeowner who has conveyed a deed to a predator (or anyone later identified to be engaged in the practice of deed stealing or equity theft sometimes referred to as "creative real estate investing") who has made false statements intended to defraud the distressed homeowner.

The Act requires foreclosing lenders to issue consumer education notices warning about scams.

Failure on the part of foreclosing lenders to properly advise distressed homeowners could result in the nullification of the foreclosure action.

Any transfer of title in material violation of the Act is voidable, and can be rescinded by the Seller within two years of recording the deed.

Personal Observation: Despite these laws designed to protect homeowners from rogue speculators, credit card companies seemingly operate above laws designed to protect consumers from price gouging, usury, and strong-arm collection practices.   And now they (credit card companies) have bankruptcy laws in their pocket, too.

An Ethical Approach