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

Step by step in Sussex County

1. 1

   Treat the notice of intent as a clock

   The lender may not file a foreclosure on an owner-occupied 1 to 4 family home until 45 days after sending the notice. The notice must include a loan accounting for the 12 months before the default, housing counselor contacts and the Attorney General's hotline number. Check the numbers against your own records right away.

2. 2

   Know what the complaint is

   Delaware calls the foreclosure action a scire facias on the mortgage. A mediation notice must accompany the complaint on covered homes. The date you were served starts both the 30-day counselor deadline and the window for the mediation conference.

3. 3

   Contact the state mediation program

   The Attorney General's program is free and aimed at homeowners with a mortgage on a one to four unit primary residence. Call (800) 220-5424 or email [email protected]. Outcomes the page lists include modifications, repayment plans, forbearance, short sales and deed-in-lieu agreements.

4. 4

   Meet a counselor and file the certificate

   Under the statute, the defendant meets with a HUD-approved housing counselor and files a Certificate of Participation within 30 days of service of the mediation notice. Ask the counselor to explain which papers to bring to the conference, such as pay records and a hardship letter.

5. 5

   Go to the mediation conference

   The conference must be set between 45 and 75 days after service. No judgment may be entered until the day after it. If an agreement is reached, get every term in writing and ask your attorney to read it.

6. 6

   Understand the Georgetown sale rules

   Sales start at 9:30 a.m. on the third Tuesday of the month. Notices are posted on the property and public buildings, and ads run in the Sussex Post and one local paper two weeks before the sale. Bidders register from 9:00 to 9:30 a.m. with ID and $4,000. The page says properties are bought sight unseen and that bidders may not enter until after confirmation.

7. 7

   Run the numbers on a sale

   Get the lender's written payoff, a realistic value, and your monthly carrying costs. For a coastal property, include flood insurance. Then compare keeping the loan through a workout with selling before the auction. The right answer depends on your equity.

Sussex County offices you may deal with

Sussex County foreclosure questions