What does DIL mean?

[Sue Bishop]

I Just received a list of 1st lien notes.

Under the current status column it has this: "DIL Being Finalized"

What does DIL mean?

Thanks in advance

[Wayne Snell]

Hi Sue, DIL stands for a "deed-in-lieu" of foreclosure. It is where you can have the borrower sign the deed over to a property to you to take the property instead of going through a full foreclosure. Generally that is a good option if there are not a lot of liens on the property that need to be cleared off. In this scenario, we typically ask the borrower to clean out the premises, broom sweep it, hand the keys to our attorney or trusted realtor and then they can walk away from the debt. We do not seek a deficiency judgement, but depending upon the state you ill need to 1099 them for releasing them from their obligation. Please seek advice from an attorney or your tax adviser for more information. This response is for entertainment purposes and is not deemed to be legal advice :)