Short answer
It is a mandatory, free program run through the Attorney General's office. Homeowners who live in a one to four unit home as their primary residence meet face to face with the lender. Outcomes can include a loan modification, repayment plan, forbearance, short sale or deed in lieu. It began January 19, 2012.
Who qualifies
The Delaware Attorney General's program page says homeowners qualify if they own a one to four unit home, live in it as their primary residence and the mortgage on the home is being foreclosed. The program is described as mandatory when a foreclosure is filed on an eligible property. Section 5062C of the Delaware Code applies to owner-occupied one to four family primary residences, with limited exceptions.
What mediation can produce
The page lists three outcomes for staying in the home: a loan modification, a loan repayment plan or a forbearance agreement. It lists two exits: a short sale or a deed in lieu of foreclosure. Mediation is face to face between the homeowner and the lender. The page describes the program as free and says it has run since January 19, 2012, with quarterly reporting through 2025.
What you must provide
Homeowners complete a Universal Intake Form and provide financial information. Section 5062C also sets duties, including meeting with a HUD-approved housing counselor and delivering a financial proposal before the conference. A hotline is listed at (800) 220-5424, and an email address, [email protected], is shown. Use them early, not on the last day.
A caution
No result is promised by mediation. The lender can say no to a modification, and the sheriff sale calendar keeps moving after mediation ends. Compare mediation outcomes with a regular sale. This page is general information and not legal advice. An attorney or counselor can help you weigh each path.
Selling for cash instead
If mediation will not save the house, some owners decide to sell on their own terms before a sale date is set. You can also ask Kaizen Home Buyers for a cash offer. We buy as-is, with no repairs and no agent commission, make offers within 24 hours and close in 14 to 30 days or on the date you set. Reach us at 267-329-0084.