Deed in Lieu of Foreclosure (DIL)
A Deed in Lieu of Foreclosure is a program under
Home Affordable Foreclosure Alternatives (HAFA) that allows you to transfer the ownership of your property to your mortgage company in exchange for a release from your mortgage loan and payments. Your servicer is not required to accept a Deed in Lieu.
Requirements for conduct a Deed in Lieu:
- The borrower is:
- An owner occupant of 1-4 unit property
- Has sufficient documented income to support the modified payment
- Has financial hardship and is delinquent or at risk of imminent default
- The loan:
- Amount owed on 1st mortgage is equal to or less than $729,750
- Mortgage was originated on or before January 1, 2009
- First mortgage payment (PITI + HOA fee) is greater than 31% of borrower's gross income
- Documentation:
- Request for Modification and Affidavit Form (
Click Here)
- Signed 4506T-EZ or 4506T (
Click Here)
- Signed copy of most recent (2009) Tax Return
- Two most recent paystubs or evidence of income
- Most recent utility bill
- Property must be listed with a realtor as a short sale for 3 months
- You have not received any reasonable offers to purchase the home