Last reviewed 08-20-2026Short-Sale.com Editorialglossary
Deed-In-Lieu (Dil) of Foreclosure (applicable to Servicing only)
FHA Single Family Housing Policy Handbook Glossary November 26 2025
Updated 08-20-2026
Deed-In-Lieu (Dil) of Foreclosure (applicable to Servicing only)
A Deed-in-Lieu (DIL) of Foreclosure is a Loss Mitigation Home Disposition Option in which a Borrower voluntarily offers the deed to HUD in exchange for a release from all obligations under the Mortgage.
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