What is a Deed in Lieu of Foreclosure?
As defined by HUD a 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.
A mortgagor and lender have about 90 days to complete the process.
Once you have decided to offer a deed in the lieu, the lender will probably wish to send out an appraiser.
Can a deed in lieu be done if there is more than one lien holder.
Yes, but it takes negotiation and we recommend that you have a lawyer drafting or at least reviewing all the paperwork. Working with the second can be especially tricky and you might wish to get your attorney involved before you stop paying your loans.