Delaware, the First State, is a place of opportunity and growth. But it may not be that for some families. You may find yourself skipping mortgage payments to make ends meet. Soon, you are facing foreclosure and uncertainty. Learning about foreclosure laws in Delaware can help you stay afloat, as does knowing who to call for assistance. We have put together some crucial information about Delaware and foreclosure to help you through the process.
Delaware uses a judicial process for foreclosures. You have 20 days to respond to a summons and complaint by the lender, and if you fail to respond, the foreclosing party will be allowed to sell your property.
About Homeownership
There are less than 900,000 people living in the tiny state of Delaware. Many others commute in for work. There are about 342,300 occupied homes in Delaware, suggesting that there is a mix of single family and multi-family properties.
Housing in Delaware may not seem too expensive when you see the median home value of $237,300. This means that you pay around $145 per square foot when buying a home. Rent runs around $1,350 per month. However, there is no sales tax in DE, and property taxes continue to be some of the lowest in the country. This can mitigate the overall cost of purchasing a home in the long run.
Cost of Living in Delaware
To compare how much it costs to reside in Delaware with the rest of the United States, we will use the cost of living index, where the national average is a fixed 100. As of 2019, Delaware expenses were 101.8 for groceries; 107.7 for healthcare; 120.2 for housing; 105.2 for utilities; and 109.1 for transportation. That means that the cost of living index for Delaware is 110.2, or about 10 percent more expensive than the rest of the country. However, housing in Delaware is about 20 percent higher than the national average.
Services in Delaware are also more costly than other places in the US. Though you may be paying only a few dollars more for a haircut or a movie ticket, those added expenses do add up. Currently, Delaware is 24th out of 50 states for the average monthly cost of energy and utilities.
Have a specific question about Avoiding Foreclosure in Delaware? Check out our Foreclosure FAQ’s section.
Foreclosure Rates in Delaware
In 2020, Delaware (alongside New Jersey and Illinois) had some of the highest foreclosure rates during the first half of the year. Delaware was averaging around 0.28 percent. The numbers did not decrease throughout 2020, either. Nationwide, June 2020 had staggeringly high foreclosure rates (around 1 in every 14,798 properties). In Delaware, 1 in every 6,798 properties went into foreclosure that same month.
By November 2020, pre-foreclosures had a 121.4 percent increase from the previous month but was down by 83.2 percent from the previous year. That puts DE at 1 in every 9,206 properties falling to foreclosure. New Castle county has the highest amount of foreclosures—around 1 in every 7,367 properties.
Foreclosure Resources in Delaware
When you receive a summons, read it carefully. Along with that notice, eligible homeowners also receive information about the Delaware Automatic Residential Mortgage Foreclosure Meditation Program. Help through the program is free, and it helps you get the counseling you need to get yourself back on track.
Delaware Emergency Mortgage Assistance Program (DEMAP)
There is also a special program in DE that offers financial assistance to homeowners. To be eligible, you must have experienced a 15 percent or more loss in income due to loss of employment or lost hours and the inability to work due to illness or injury.
Low Income Home Energy Assistance Program (LIHEAP)
In Delaware, you may be able to get assistance with paying for utilities if you are low-income. You will be able to get fuel assistance, enrollment into the Summer Cooling Assistance Program (SCAP), and Crisis Assistance during the winter months.
Still have unanswered questions about foreclosure in Delaware? Give us a call at 1-877-494-9007. We have representatives on standby who can offer advice and address your concerns about the foreclosure process.
Delaware Foreclosure Attorney
Sounds scary, but reaching out to a foreclosure attorney in Delaware may give you some insight into your legal options. An attorney may help you understand your rights as a homeowner and options other programs may not explore. Attorneys generally offer a free consultation, this gives you the chance to get answers to basic questions before paying.
Delaware Bankruptcy Attorney
Filing bankruptcy can protect a home facing foreclosure. But, this does not mean it is true for Delawareor your unique situation. Chapter 7 bankruptcy in Delaware may temporarily stop a foreclosure sale for 45 to 65 days after filing. This can give a homeowner time needed to catch up on mortgage payments and work out a solution with the lender.