DIL with tenants in place

walkin

LoanSafe Member
May 1, 2012
361
6
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I tried the search function, to no avail. The best I found was that there isn't much of a difference between FC and DIL, as it affects the tenants, so I'm reaching out to members who might have gone through this process.

If a DIL is agreed upon, do the tenants get to stay in the house until their lease agreement expires, if it is more than 90 days from the date of DIL? Is this something that can be negotiated with the bank, by me the homeowner, prior to agreeing to a DIL? Would they be living rent free, or would they send the rent to the bank (if demanded)?

I would assume the banks want someone occupying and taking care of the house, instead of booting the tenants and having an empty house on their books?

Example: tenants have 6 months left on their agreement, DIL closes tomorrow. Are they good?