Deed in Lieu of Foreclosure (DIL) Information
Another alternative to foreclosure is called Deed in Lieu of Foreclosure (DIL).
- DIL means that you voluntarily transfer ownership of your home to your lender, the lender terminates the loan, and the remaining balance due is forgiven.
Note: A DIL may have tax consequences and/or impact your credit, so you’ll want to contact your tax advisor to discuss these potential impacts.
- With a DIL arrangement, you’ll have plenty of time to plan your move and transition out of your home. You may also be eligible for relocation assistance or assistance with paying other liens and judgments against your property.
You will need to submit a completed Statement of Information form to start the review process.