MORTGAGE WORKOUTS: DEEDS IN ESCROW

Editors ' Synopsis: In this Article, the author undertakes a comprehen sive analysis of transactions involving deeds in escrow. The Article begins by discussing the general disfavored status of deeds in escrow that accompany a party 's original acquisition of property, and hence resemble a mortgage arrangement. Turning to a deed-in-escrow trans action that arises in the context of a loan workout, the Article examines potential challenges to the escrow transaction based on theories of clog ging and equitable mortgage. The Article then sets out conditions in which a deed-in-escrow transaction is likely to withstand attack. Last, the Article notes a variety of bankruptcy issues that can impact a deed in-escrow transaction. The Article concludes that deeds in escrow can