DIL Denied

After eight months on the market as a short sale without an acceptable offer, my client asked US Bank and VA for a deed-in-lieu.  It was just denied because of "property condition."  The property is one unit in a 12-unit condo complex.  The borrower's unit is well maintained in very good condition.  The problem is the exterior of the entire building, especially roof, wooden siding, and wooden decks which the HOA, by covenant, is responsible for maintaining.  The HOA claims it doesn't have the money to make needed repairs, so the building continues to decline.  US Bank says " the owner (borrower) should force the HOA to repair the deteriorating siding and the roof leaks or should make the repairs (to the whole building) himself." ...and pigs fly!  I contend the eventual outcomes to US Bank/VA from a DIL or from foreclosure are the same.  The borrower receives some benefits from a DIL. I am getting ready to turn the issue over to an attorney, but would like to know if anyone has had a similar experience.  Thanks   

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