Options to Stop Foreclosure on Your Delaware Property

Foreclosure is a legal process that occurs when a homeowner fails to make mortgage payments, resulting in the lender repossessing the property. In Delaware, homeowners facing foreclosure have several options to prevent the loss of their home. This article will explore various strategies to stop foreclosure in Delaware, helping homeowners make informed decisions to protect their property and financial future.

Understanding Foreclosure in Delaware

Delaware’s foreclosure process is governed by state law and follows a specific timeline. Homeowners must understand the process and their rights to effectively navigate this challenging situation.

Foreclosure Laws in Delaware

Delaware law requires lenders to follow a judicial foreclosure process, meaning they must file a lawsuit in court to initiate foreclosure. This process provides homeowners with the opportunity to contest the foreclosure and explore alternatives to prevent it.

Foreclosure Timeline in Delaware

The foreclosure process in Delaware typically begins when a homeowner misses three consecutive mortgage payments. After the lender files a lawsuit, the homeowner will receive a summons and complaint. If the homeowner fails to respond within 20 days, the lender can request a default judgment. If the homeowner contests the foreclosure, a trial will be held, and the court will issue a ruling. If the court rules in favor of the lender, a foreclosure sale will be scheduled.

Options to Stop Foreclosure

Homeowners facing foreclosure in Delaware have several options to prevent the loss of their property. Each option has its advantages and potential drawbacks, so it’s essential to carefully evaluate each one based on individual circumstances.

Loan Modification

A loan modification involves altering the terms of the mortgage to make payments more manageable. This can include extending the loan term, reducing the interest rate, or adjusting the principal balance. Homeowners can apply for a loan modification through their lender or a HUD-approved housing counseling agency.

To qualify for a loan modification, homeowners must provide documentation of their financial situation, including income, expenses, and hardships. Lenders will evaluate the application and determine if the homeowner meets the criteria for a loan modification. If approved, the lender will provide a new mortgage agreement with the revised terms.

It’s essential to note that loan modifications can have tax implications. Homeowners should consult with a tax professional to understand the potential consequences of a loan modification.


Refinancing involves replacing the existing mortgage with a new one, often with a lower interest rate or a longer loan term. This can reduce monthly payments and make it easier for homeowners to keep up with their mortgage obligations. To qualify for refinancing, homeowners typically need a good credit score and sufficient equity in their property.

Homeowners can apply for refinancing through their current lender or a new lender. It’s essential to compare offers and choose the best option based on interest rates, fees, and terms. Homeowners should also consider the costs of refinancing, including closing costs and origination fees, to ensure the benefits outweigh the costs.


Forbearance is an agreement between the lender and the homeowner that temporarily suspends or reduces mortgage payments. This can provide homeowners with the time and financial flexibility to address the underlying issues causing their inability to make payments. Homeowners can request a forbearance agreement by contacting their lender directly.

Forbearance agreements typically last between three to six months, but they can be extended based on the homeowner’s situation. During the forbearance period, the lender will not initiate foreclosure proceedings. Once the forbearance period ends, the homeowner must resume making regular payments, often with a lump sum payment or a repayment plan.

Selling Your Home

Selling the property can be an effective way to avoid foreclosure, especially if the homeowner has sufficient equity in the property. Homeowners can sell their property through a real estate agent or directly to an investor. It’s essential to price the property competitively and consider the timeline for a successful sale.

Homeowners should consult with a real estate agent or attorney to understand the legal requirements and potential consequences of selling their property to avoid foreclosure.


Bankruptcy can halt foreclosure proceedings and provide homeowners with the opportunity to reorganize their debts. Homeowners can file for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy involves liquidating assets to pay off debts, while Chapter 13 allows homeowners to create a repayment plan. It’s crucial to consult with a bankruptcy attorney to determine the best course of action.

Bankruptcy can have long-term consequences on a homeowner’s credit score and financial future. Homeowners should carefully consider the potential benefits and drawbacks of bankruptcy before making a decision.

Seeking Legal Assistance

Consulting with a foreclosure attorney can help homeowners understand their rights and explore all available options to stop foreclosure. A foreclosure attorney can negotiate with the lender, represent homeowners in court, and provide guidance on the best course of action.

Homeowners should choose a foreclosure attorney with experience in Delaware’s foreclosure laws and processes. It’s also essential to consider the attorney’s fees and availability to ensure a good fit.

Resources for Homeowners Facing Foreclosure

Homeowners in Delaware facing foreclosure can access various resources to help them navigate this challenging situation.

Foreclosure Prevention Agencies

The Delaware State Housing Authority (DSHA) offers foreclosure prevention counseling and resources to homeowners. HUD-approved housing counseling agencies are also available to provide guidance and support.

These agencies can help homeowners understand their options, negotiate with lenders, and develop a plan to prevent foreclosure. They can also provide education on financial management and budgeting to help homeowners avoid future financial difficulties.

Government Resources and Assistance Programs

The Delaware Emergency Mortgage Assistance Program (DEMAP) provides financial assistance to homeowners facing temporary hardships. The Delaware Hardest Hit Fund (HHF) offers mortgage payment assistance to eligible homeowners.

Homeowners can apply for these programs through the DSHA or a HUD-approved housing counseling agency. It’s essential to provide all required documentation and meet the eligibility criteria to increase the chances of approval.

Non-Profit Organizations

Non-profit organizations, such as the United Way of Delaware and the Catholic Charities of Wilmington, offer foreclosure prevention resources and assistance to homeowners. These organizations can provide financial assistance, counseling, and legal aid to help homeowners navigate the foreclosure process.

Homeowners should research these organizations and their eligibility requirements to determine if they qualify for assistance.


In conclusion, homeowners facing foreclosure in Delaware have several options to prevent the loss of their property. From loan modifications and refinancing to forbearance agreements and bankruptcy, each option has its advantages and potential drawbacks. It’s essential to carefully evaluate each option based on individual circumstances and seek professional guidance when needed.

We understand the challenges of facing foreclosure and are committed to helping homeowners like you explore all available options. Our team of experienced professionals can provide guidance on the foreclosure process, negotiate with lenders, and help homeowners make informed decisions to protect their financial future.

If you’re facing foreclosure in Delaware, don’t wait. Contact us today to schedule a consultation and explore your options to stop foreclosure. Together, we can help you navigate this challenging situation and find a solution that meets your needs.

Frequently Asked Questions (FAQs)

Q: What is the foreclosure process in Delaware?

A: Delaware follows a judicial foreclosure process, meaning the lender must file a lawsuit in court to initiate foreclosure.

Q: How can I stop a foreclosure in Delaware?

A: Options to stop foreclosure in Delaware include declaring bankruptcy, applying for a loan modification, reinstating your loan, or pursuing a repayment plan.

Q: What are the preforeclosure requirements in Delaware?

A: Delaware law requires the lender to send a notice of intent to foreclose 45 days before starting a foreclosure on a residential property.

Q: How does bankruptcy stop a foreclosure in Delaware?

A: Filing for bankruptcy automatically stops the foreclosure process, providing homeowners with time to catch up on missed payments.

Q: What is loan modification in Delaware?

A: Loan modification involves negotiating with the lender to change the terms of the mortgage, such as the interest rate or payment schedule, to make it more manageable for the homeowner.

Q: How can I reinstate my loan in Delaware?

A: Homeowners can reinstate their loans by paying off the missed payments and any associated fees before the foreclosure sale.

Q: What resources are available for homeowners facing foreclosure in Delaware?

A: Homeowners facing foreclosure in Delaware can access resources from the Delaware Emergency Mortgage Assistance Program (DEMAP) and various housing counseling agencies.

Q: What happens if the lender violates Delaware foreclosure laws?

A: If the lender violates Delaware foreclosure laws, homeowners may have a defense against the foreclosure and could potentially challenge the process.

Q: Can I redeem my property after a foreclosure sale in Delaware?

A: No, Delaware does not have a right of redemption, meaning homeowners cannot redeem their property after a foreclosure sale.


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