Accepting a DIL means you get the property with the existing liens to payoff as full payment for the debt owed to  you and you have no recourse for any deficiency against the borrower.

If the unit fails the inspection, then you, the landlord, will receive a letter outlining the deficiencies and will be given a time frame to correct these.

MINOR CAUTION TO CHECK OUT FIRST...Please check the rules on deficiency balances??? 

For example, if your income isn't that high, but the property cash flows incredibly, this may overcome the fact that your income isn't as high as they would like to see.12 Steps to Getting a Bank to Say Yes.PropertyProperty TypeProperty LocationProperty ConditionLoan AmountDebt to Income Ratio (DTI)DTI = Debt / IncomeFront-EndBack-End (most important)Relationship between total debt and how much incomeAll lenders are different.Usually have two (front and back)Loan to Value (LTV)LVT = Loan Amount / Property ValueExamplesFHA = 96.5%403k = 96.5%Conventional = 80%Commercial = 70%Most of the time pre-hab value is used.Hard money focuses on after renovation value (ARV).Credit ScoreRepayment SourceIncomeRental IncomeExperienceCash Reserves6 months of payment is preferredRecent Credit ChangesCompensating FactorsOutstanding performance on one factor can sometimes compensate for minor deficiency in another.Present the Deal ProperlyThe 5Cs of a Perfect Loan ProposalConfidenceClarityConciseConvenientCreative

Make the seller pay for any deficiencies.  

@Bob Malecki You have to look at the Order for Foreclosure to see if you can get a deficiency.

This subsection does not apply to a lien or encumbrance placed on the property that is:(1) placed on the property because of the conduct of the purchaser;(2) agreed to by the purchaser as a condition of a loan obtained to place improvements on the property, including utility or fire protection improvements; or(3) placed on the property by the seller prior to the execution of the contract in exchange for a loan used only to purchase the property if:(A) the seller, not later than the third day before the date the contract is executed, notifies the purchaser in a separate written disclosure:(i) of the name, address, and phone number of the lienholder or, if applicable, servicer of the loan;(ii) of the loan number and outstanding balance of the loan;(iii) of the monthly payments due on the loan and the due date of those payments; and(iv) in 14-point type that, if the seller fails to make timely payments to the lienholder, the lienholder may attempt to collect the debt by foreclosing on the lien and selling the property at a foreclosure sale;(B) the lien:(i) is attached only to the property sold to the purchaser under the contract; and(ii) secures indebtedness that, at no time, is or will be greater in amount than the amount of the total outstanding balance owed by the purchaser under the executory contract;(C) the lienholder:(i) does not prohibit the property from being encumbered by an executory contract; and(ii) consents to verify the status of the loan on request of the purchaser and to accept payments directly from the purchaser if the seller defaults on the loan; and(D) the following covenants are placed in the executory contract:(i) a covenant that obligates the seller to make timely payments on the loan and to give monthly statements to the purchaser reflecting the amount paid to the lienholder, the date the lienholder receives the payment, and the information described by Paragraph (A);(ii) a covenant that obligates the seller, not later than the third day the seller receives or has actual knowledge of a document or an event described by this subparagraph, to notify the purchaser in writing in 14-point type that the seller has been sent a notice of default, notice of acceleration, or notice of foreclosure or has been sued in connection with a lien on the property and to attach a copy of all related documents received to the written notice; and(iii) a covenant that warrants that if the seller does not make timely payments on the loan or any other indebtedness secured by the property, the purchaser may, without notice, cure any deficiency with a lienholder directly and deduct from the total outstanding balance owed by the purchaser under the executory contract, without the necessity of judicial action, 150 percent of any amount paid to the lienholder.

All depends on what side of the deal you are on.Buyer pro's; *They can get a good dealBuyer con's; *They can sit for months due to ineptness of other parties out of their control, or due to their own ineptness or lack of reality or understanding of the process*They aren't going to get the seller to pay for closing costs, carpet allowances, roof credit, etc.Seller pro's; *They can get out of the loan without a foreclosure*In some states, they are prohibited from making a contribution to the short sale and/or the lender is prohibited from applying any deficiency back to the sellerSeller con's; *They can sit for months due to the ineptness of other parties out of their control, or due to their own ineptness or lack of reality or understanding or understanding of the process*They have a short sale on their credit and get all miffed when they finally realize its almost as much of a hit on their credit as a foreclosure isLender pro's;* They get to dispose of an asset quicker and cheaper than going through foreclosureLender Con's;*They can sit for months due to the ineptness of other parties out of their control, or due to their own ineptness or lack of reality or understanding or understanding of the processAgent Pro's;*They get to help out a buyer/seller*They get to earn a full commission*They get to be noticed by a lender when they are competent for future deals (i.e.

We had been given some time to correct the deficiencies, which we did. 

His compromise was to get me to pay him a reduced amount and give him additional business for deficiencies, not damage, because he will file another supplemental claim with the insurance company.