A Deed in Lieu of Foreclose is sort of a “friendly” Trustee’s Deed. The lender takes back the property without the cost and formality of a TD, and everybody moves on. If a 3rd party is involved, it is like a streamlined short sale.
There has been a lot of discussion of Shadow Inventory and where have all the NODs and TDs gone. The have moved to DILs.
In March 2014, 114 DILs and 113 TDs were recorded in Washoe. March 2013 saw 17 DILs and 93 TDs. March 2012 saw 21 DILs and 199 TDs. With the changes in foreclosure regulations and the Home Owner’s Bill of Rights, the popularity of DILs is skyrocketing.
HERE is the DIL spreadsheet from the Assessor sorted by date.. The really interesting thing to look at is the 3rd Parties using DILs to acquire properties. Thunder Properties, TBD, SAC II, Cactus Homes, LVDG, Reno Property Management (Page / NRES). Here is what Thunder Properties has in their arsenal – they seem to be a rental hold.
All of the 3rd party DIL action is happening under the radar. There is a lot of money being made by 3rd parties teaming up with the lenders, and no oversight whatsoever about what is going on below the surface. A lot of institutional firms seem to be joining our local investors. And why do I sense that the average homeowner is somehow getting screwed by these back alley deals? Because they always have been and always will be.