I was wondering when/why a distressed homeowner would sign the deed over to a bank. Is the advantage to have it not go to auction on behalf of both parties?
And when that is done, can a buyer be ready and willing to purchase it immediately? Reviewing a few transactions via B&T, I have noticed a few of them.
I’m thinking the majority of these (90%) are from failed HAFA short sales. These have been awful since the beginning – only a number of around 275 have successfully gone through. The rest, when the bank either does not APPROVE a short sale price, or the 120 days timeline expires, the homeowner doesn’t even really understand they already signed a DIL giving the house to the bank.
Rarely will a homeowner give it back…a “DIL” (Deed in lieu of foreclosure) on a credit report barely is better than “Foreclosure”. There’s usually an action that prompts it, in this case, a failed HAFA short sale.
Once DIL goes through, it goes into the Asset Management / REO division, and goes through normal channels, where it’s first sent to the REO agent they work with to prep it for listing. Usually takes 90 days to 6 months before it goes live on MLS.