HUD authorizes Mortgagees to offer Standard Deed-in-Lieu (DIL) to Non-Occupant Borrowers when the following can be demonstrated:
- Need to vacate: the non-occupancy was related to the cause of Default; or
- Not purchased/used as rental: the subject Property was not purchased as a rental or used as a rental for more than 18 months prior to the offering of the DIL Option.
Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.
For policy information see Handbook 4000.1 Section III.A.2.l.iii.(B)(2)(e) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh