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Deed-In-Lieu (Dil) of Foreclosure (applicable to HECMs only)

FHA Single Family Housing Policy Handbook Glossary November 26 2025

Updated 08-20-2026

Deed-In-Lieu (Dil) of Foreclosure (applicable to HECMs only)

A Deed-in-Lieu (DIL) of Foreclosure is an option for a property owner to deed a mortgaged Property to the Mortgagee in lieu of the Mortgagee taking title through a foreclosure action.

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