Facing Foreclosure · Wilmington, DE

Facing Foreclosure in Wilmington, DE: Your Options

A foreclosure notice on a Wilmington house is frightening, and Delaware's process is different from Pennsylvania's. There is a state mediation program, a counselor requirement and a monthly sheriff sale at the City/County Building. Knowing the dates helps.

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Modest New Jersey split-level during a mortgage foreclosure

Kaizen Home Buyers can send a cash offer within 24 hours for the house as it is, with no repairs and no agent commission on our side. Closing can be 14 to 30 days out or on your date. We are not lenders or lawyers, and a housing counselor or attorney should look at your options too.

What’s different in Wilmington

The free mediation program

The Delaware Attorney General's Automatic Residential Mortgage Foreclosure Mediation Program is free and started January 19, 2012. It covers owner-occupied one- to four-unit homes and aims for face-to-face talks with the lender. The hotline is (800) 220-5424. Possible outcomes include loan modification, repayment plans, forbearance, short sale and deed-in-lieu. If you rent out part of a Wilmington multifamily, call to ask whether your case qualifies. Staff can tell you whether your case is covered.

Deadlines that run from service

On an owner-occupied 1 to 4 family home, the lender cannot file until 45 days after sending its notice of intent. When you are served with the mediation notice, you must meet a HUD-approved housing counselor and file a Certificate of Participation within 30 days. The conference is set 45 to 75 days after service, and no judgment can be entered before the day after it. Keep the service date, and put it on a calendar next to the counselor deadline and the conference window. Missing the 30-day filing can cost you the mediation, so treat it as the first date that matters.

Sale day at the City/County Building

New Castle County holds sheriff sales on the second Tuesday of each month at 9:00 a.m. at 800 N. French Street. Bidders register from 7:30 to 9:15 a.m. and must have $10,000 in certified funds, collected only from the winning bidder. Twenty percent is due at the time of sale on mortgage sales. The Sheriff's phone is 302-395-8450. Confirm any date with the plaintiff's attorney.

Checklist before you sell

Notice of intent to foreclose and every letter after it
The complaint and the notice of foreclosure mediation, with the date served
Contact for a HUD-approved housing counselor and the Certificate of Participation
Income records for the lender's loss mitigation review
Written payoff from your servicer
Deed, tax bills and insurance papers
Sale date if one is set

How Kaizen can help

Send us the Wilmington address and the dates on your notices. We view the house as it is and send a cash offer within 24 hours, so you can set it beside your payoff. Call before the counselor deadline if you can, so the numbers are ready. The mediation conference is a chance to discuss every option with the lender, and a cash offer in hand shows what a sale would produce if you decide to leave.

If a sale fits, we can close in 14 to 30 days or on your date. We cannot say it will beat a sale date, which is why we ask for the date first. You can decline, and the mediation path stays open. Call 267-329-0084.

Facing Foreclosure in Wilmington: questions

Who can help me find a counselor?

The Attorney General's mediation hotline is (800) 220-5424. Ask staff about HUD-approved counseling before your 30-day deadline.

Can I sell before the sheriff sale?

Often, if the sale closes in time to pay off the loan and recorded liens. A foreclosure attorney can confirm. New Castle County sells on the second Tuesday of the month. Bring the payoff letter to the first conversation.

What is the loss mitigation affidavit?

Before a judgment or sheriff sale on an owner-occupied 1 to 4 family home, the plaintiff must file an affidavit about your chance to apply for a federal loss mitigation program. An attorney can check the docket.

Does mediation cost anything?

The state program is free, according to the Attorney General's page.

Keep reading

We buy houses in Wilmington Facing Foreclosure: full guide Selling an Inherited House in New Castle County, Delaware (Probate Guide)Facing Foreclosure in New Castle County, Delaware: Mediation and Sheriff Sale Guide Selling an Inherited House in Wilmington, DE Selling a Wilmington Rental When You Are Done Being a Landlord Selling a Vacant House in Wilmington, DE Facing Foreclosure on a Philadelphia Home: Your Options Facing Foreclosure in Upper Darby: Your Options Facing Foreclosure in Chester, PA: Your Options Facing Foreclosure in Norristown: Your Options Facing Foreclosure in Abington Township: Your Options Facing Foreclosure in Plymouth Meeting: Your Options

Sources

General information, not legal or tax advice. Rules change; confirm details with the office or a professional.

Delaware Code Title 10, Chapter 49, Subchapter XI (sections 5061 to 5062C) (State of Delaware, current online code)
Sheriff Sales (New Castle County, Delaware, 2026 sale schedule)
Kaizen process steps (Kaizen Home Buyers, 2026-10-23)
Delaware Automatic Residential Mortgage Foreclosure Mediation Program (Delaware Department of Justice, notice form updated September 2024)

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