What is a Deed in Lieu of Foreclosure (DIL) and when does this make sense?

With a Deed in Lieu of Foreclosure (DIL), you give your home to the lender (the deed), and in exchange, the lender cancels the loan rather than foreclosing on the property. Your loan obligation is effectively satisfied. A DIL is appropriate if you do not have any income to make even reduced monthly payments or if you simply want to walk away from the house and move on.

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