Facing Foreclosure in New Castle County, Delaware: Mediation and Sheriff Sale Guide

Step by step in New Castle County

1. 1

   Read the notice of intent to foreclose

   For an owner-occupied 1 to 4 family home, Delaware law says the lender cannot start the foreclosure until 45 days after it sends this notice, by certified and first class mail. The notice must list the amount in default, how to reinstate the loan, housing counselor contacts, and the Attorney General's foreclosure hotline number. It must also include a 12-month accounting of the loan before the default.

2. 2

   Understand how the case starts

   A Delaware mortgage foreclosure is a scire facias action on the mortgage under Title 10, section 5061. When the property is an owner-occupied 1 to 4 family primary residence, a notice of foreclosure mediation is served with the complaint. Keep every paper and write down the date you were served, because the next deadline runs from that date.

3. 3

   Call the free mediation hotline

   The Attorney General's program is free and open to people who own a one to four unit home as their primary residence. It aims for face-to-face talks with the lender. Outcomes include loan modifications, repayment plans, forbearance, short sales and deed-in-lieu arrangements. Call (800) 220-5424 or email [email protected].

4. 4

   Meet a counselor and file within 30 days

   The statute says the defendant must meet with a HUD-approved housing counselor and file a Certificate of Participation within 30 days from the date the mediation notice was served. Miss that window and you may lose the mediation. A counselor can also help you gather income papers the lender will ask for.

5. 5

   Attend the mediation conference

   The conference is scheduled not less than 45 days and not more than 75 days after service of the notice. No judgment can be entered in a covered case until the day after the scheduled conference. Parties are expected to appear in person, and the lender must have someone with settlement authority available.

6. 6

   Know the loss mitigation affidavit

   Before a judgment or a sheriff's sale on an owner-occupied 1 to 4 family home, the plaintiff must file an affidavit showing you had the chance to apply for a federal loss mitigation program, or that the loan was ineligible. If it does not, the judgment is dismissed without prejudice. Ask your attorney to check that this was filed.

7. 7

   Learn the sheriff sale rules

   New Castle County sells at the City/County Building on the second Tuesday of each month at 9:00 a.m. Bidders register from 7:30 a.m. to 9:15 a.m. and need $10,000 in certified funds, collected only if they win. On mortgage sales, 20% is due at the time of sale. Call 302-395-8450 for sale information, and confirm any date with the plaintiff's attorney.

New Castle County offices you may deal with

New Castle County foreclosure questions