Foreclosure Help in Delaware
Also known as The First State, Delaware has a rich heritage and unique place in American history, being the first state to ratify the Constitution on December 7, 1787. Although there are only about 30 miles of coastline, bays, inlets, and rivers create an additional 350 miles of shoreline to be enjoyed by its residents and visitors.
Delaware’s cost of living is among the lowest in the nation. There is no state sales tax, no personal property tax, Social Security is not taxed, and up to $12,500 in pension income is exempt from state income tax, which caps out at 6.6%.
Not only is Delaware a haven for retirement, but it is also driving distance to major cities like Washington DC and Baltimore. All in all, Delaware is a lovely place to live, a real bargain on the eastern seaboard.
Just under 71% of Delaware residents own their home, a full 6% higher than the national average. As of May 2019, Delaware has the proceedings foreclosure rate in the country (Realty Track) at one foreclosure in every 1279 mortgages.
The foreclosure laws in Delaware are judicial. All procedures are established in statute and conducted through court filings and proceedings. The first step, although not required by law, is a notice of default to inform the homeowner of potential action and discuss the resolution. The next step, which is required by law, is the notice of intent to foreclose by certified mail 45 days before serving the foreclosure.
In most cases, mediation is required by law. This opportunity is provided by the homeowner to negotiate terms to avoid foreclosure. Once the filing is made, the homeowner has 20 days to file their answer.
It is highly recommended that a local foreclosure attorney be retained for this. This answer has technical legal requirements that must be met. Failure to do this could result in a default judgment in the bank’s favor. You could lose your case.
Have a specific question about Avoiding Foreclosure in Delaware? Check out our Foreclosure FAQ’s section.
A Case Scheduling Order will be issued after the filing, an itinerary for your case as it moves through the process.
When the case comes before a judge, they will determine whether the foreclosure is proper. If so, the home will be scheduled for sale at auction. Once the property is sold, the courts must confirm the purchase. The homeowner may stay in the house until that confirmation.
There is much more to understand about the foreclosure laws in Delaware. To understand more, you may want to read the entire code. You can do that here.
Due to the state’ s high rate of foreclosures, the Office of Foreclosure Prevention & Financial Education was created as part of the Consumer Protection Division of the Atty. General’ s office. This office will help you navigate the process, assist you in working with your creditors, and protect you against unfair treatment.
Foreclosure is never fun nor easy, but working with Foreclosure Prevention, and retaining a qualified foreclosure attorney, can at least make the process safe and minimize your potential losses.