Failed Short Sale But DIL

Well, the bank have agreed to do a deed-in-lieu of foreclosure for me. Those who have read my previous posts will know that the investor who was going to buy my house through a short sale dropped out due to market conditions becoming horrendous in my area, and I spoke to the bank (Homecomings) about doing a DIL. They have been great. I just got a call this morning saying their title search is complete, it came back all clear and they’re sending me the DIL agreement. I had a friend of the original investor try to get me to show the house to some more potential buyers, but I’m done. It’s been over half a year since all this started, and I don’t have the energy to wait and hope that someone will want it eventually. Clean break time.

Anyways, I don’t imagine I’ll be posting here again, but I just wanted to say thanks to the people here who gave me advice or even a few words of encouragement. Anyone here who’s in the same boat I was in should be aware that the people who work for lenders aren’t monsters, they’re human just like us, and I’m so glad I was upfront with them and at least tried to resolve my situation. It’s made life so much less stressful than it could have been. Thanks again, everyone.


I hope it works out the best for you. You obviously found a good person at your mortgage company to work with and that makes a difference. Best of luck to you.

I am curious as to how often banks do these deed in lieu of foreclosures, these days? Once the bank passes it off to the loss mitigation company, can a deed in lieu of foreclosure still be done?

I am working a short sale now that looks like there is a 50/50 chance of being completed. It would be nice to have an out like a DIL, to bail the homeowner out, if the shorsale cannot be completed.

Anybody have more information on this?

what negative aspects does a DIL have on the home owner? with zero lates on both mortgages, but getting calls from 1st mortgage company…would that be better than doing a SS? ty


If you are the one helping somebody through foreclosure and the person has 0 lates, lenders will not even consider a ss. From my experience- it takes 2-3 months of lates for lenders to consider one.

They may consider a dil at this time if you can prove that their is absolutely no way that you can satisfy the loan in the future. A dil would be better, in my opinion, because it has a greater chance of being accepted by the lender than a ss. A ss is a long drawn out process and even after being approved by the bank, you still need to be able to close quickly.

Obviously, a dil will get the investor nothing…but I personally feel that we have a fiduciary duty to work in the best interest of our distressed homeowners.