., first lien investor, junior lienholder, and mortgage insurer as applicable), and proof of funds or financing has been provided to the lender or authorized agent.

You get unlimited telephone access to "junior mentors" who are not real estate agents.

A DIL a lender will not usually take back if there are a bunch of other liens after them on a property.If there was still sufficient equity maybe but the property is usually under water.So in those cases the lender usually just forecloses and wipes out all of the junior liens for the property.Things like property taxes and IRS tax liens can supersede a senior mortgage lien and not be wiped out in foreclosure.

Sounds like a first mortgage lien in 04' and a HELOC junior lien in 08'.

Also, both Gordon Moss and Dave Van Horn are excellent resources but realize that they play in the NPN 2nd or junior lien space, and I'm assuming you are looking at 1st position notes. 

This studio/junior one bedroom used to be the primary residence for my wife and me, but with a baby now in the mix we moved and found a great tenant.  

If there are any junior liens, and since you state you are the senior lien holder, accepting a DIL would leave all those junior liens in place for you to pay off, whereas foreclosing from the senior-most lien position extinguishes those junior liens.

@Bill Gully - Getting deed-in-lieu can be a good strategy but we need to keep in mind that junior liens are not wiped out with DIL as they are with a foreclosure action. 

If nobody else bids, then the bank "buys" the property back, cleansing the property of all junior liens, evicts the former homeowners and lists the property with a Realtor who specializes in REO (Real Estate Owned) on the MLS or Hubzu or Auction.com, etc. 

Is it possible to inherit the junior liens by mistake if you do it this way instead of waiting until after the auction?