Can I sell my Delaware house while foreclosure mediation is pending?

The Delaware Attorney General's page describes two exit options out of mediation, a short sale and a deed in lieu of foreclosure. A short sale means selling for less than the loan balance with the lender's approval. It is a path the program itself names, so choosing to sell is not a failure of the process. It is one of the listed endings.

Section 5062C bars entry of judgment until the day after the scheduled mediation conference, but it does not say you cannot market the house. If a buyer appears, the lender's payoff, any other liens and fees all affect the closing. Share the contract and the buyer's timeline with the lender and, if you have one, the housing counselor.

For a regular sale, compare the price, repairs, agent commission and time on the market against what you owe. For a short sale, ask whether the lender will release the debt or pursue a deficiency. For a deed in lieu, ask what happens to junior liens. Delaware's transfer tax chapter exempts deeds in lieu and sheriff sales, but a normal sale is taxed, so ask your closing agent for the full numbers.

Ask the lender to confirm any agreement in writing. Do not rely on verbal promises. This page is general information and not legal advice. A Delaware attorney can review the contract before you sign it.

When a sale date is on the calendar, a short, certain closing can matter more than the last dollar of price. If you want a direct sale, Kaizen Home Buyers can make a cash offer on the house exactly as it stands. There are no repairs and no agent commission. An offer can come within 24 hours, and closing takes 14 to 30 days or lands on your date. The number is 267-329-0084.