Deed-in-Lieu Frequently Asked Questions
A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor
voluntarily deeds collateral property in exchange for a release from all obligations under the
mortgage. A DIL of foreclosure may not be accepted from mortgagors who can financially
make their mortgage payments.
1: When a mortgagor has been approved for utilizing a DIL of foreclosure, how much
time does a mortgagee have to complete the DIL?
Question 2: Does HUD allow $2,000 to pay off second liens when determining if a mortgagor is
eligible for a DIL?
Question 3: Can a mortgagee revert from a foreclosure process to the acceptance of a DIL
from a mortgagor?
Question 4: Does a mortgagee have the ability to accept a DIL of foreclosure when there is an existing