When lenders actually accept deed-in-lieu
Lenders aren't required to accept a DIL. They accept it only when ALL these conditions are met: (1) The property is unlikely to sell at traditional listing at a price covering the mortgage, (2) There are no second mortgages, home equity lines of credit (HELOCs), or junior liens the lender would have to negotiate too, (3) The homeowner has tried in good faith to sell or refinance first (some lenders require proof of 90 days active listing), (4) The homeowner doesn't have significant assets the lender could pursue in foreclosure. If you have a HELOC or second mortgage, your DIL will likely be rejected.
