Save My Home
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There are a few different ways that you can negotiate with your lender. You can reinstate your loan in full if you can afford to repay your past due amount. You can modify your loan or change one or more terms of the mortgage contract to make it more manageable. You can negotiate a repayment plan that allows you to pay your mortgage plus some of your balance owed over a fixed amount of time and lastly you can ask for forebearance… which is when your mortgage payments are reduced or suspended over time.
If you begin early enough in the process, you can work with your lender directly or a mediator to achieve a solution. -
Depending on the state that you reside in, there is likely a few programs you can leverage. In Delaware, you can use the Delaware Mediation Program, which allows anybody facing foreclosure who lives in a 1-4 unit residence to be able to work with a mediator to find a solution with their lender.
The Delaware Mortgage Relief Program is another option that provides up to $50,000 in one-time payment on behalf of a qualified homeowner to pay delinquent mortgage arrears and/or another resolution to right-size future mortgage payments to levels affordable to the homeowner.
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One of the most powerful tools at your disposal is bankruptcy. Which doesn’t just give you breathing room—it can be a strategic way to protect your home and get back on track financially.
Through Chapter 13 bankruptcy, you can create a repayment plan to catch up on missed mortgage payments over three to five years, all while stopping foreclosure proceedings in their tracks. Filing for bankruptcy immediately halts lender actions, thanks to the automatic stay—a legal shield that prevents creditors from moving forward with foreclosures, wage garnishments, and other collection efforts.
Meanwhile, Chapter 7 bankruptcy can help those overwhelmed by unsecured debts like credit cards, freeing up resources to focus on keeping your home.
Explore Your Options During the Foreclosure Process
In Delaware, every home in foreclosure follows the same standard process. Your options for fighting foreclosure depending on what stage in the process you are in.
Initial Letters
Letters you receive in the beginning of the pre-foreclosure process informing you of breach of contract and lender’s intent to foreclosure
Fair Debt Letter
Letter from lender that alerts owner that their mortgage is overdue and the total amount now due in full.
Writ of Scire Facias
The official lawsuit the lender files with the county to begin foreclosure
From the time this is filed, you have about 5 months before the home is sold.
Mediation
All owners who live in a 1-4 unit house in Delaware have the option to meet with a mediator.
During mediation, you can work with the mediator to modify your loan, reinstate the loan, or come up with a repayment plan.
Pre-Foreclosure
Judgement
The foreclosure attorney enters a judgement with the court in your name.
The judgement generally includes the total amount owed on your mortgage plus interest and fees on late payments and legal fees.
Sheriff Sale
The official request (Levari Facias) is issued to sell your home at the sheriff sale.
You generally have 2-8 weeks after you receive this notice to when the property will be scheduled for sale.
Sheriff will send notices to lawyers and public regarding upcoming sale.
Foreclosure
Sometimes, none of the options to save your home are available to you. In that case, you have a few options:
To avoid credit impact, you can give the title back to the lender in what’s called Deed in Lieu of Foreclosure.
If you want to get something in return for your home, you can sell it. The value of your home and the amount left on your mortgage will dictate whether you can sell the home on the market or to an investor. Figure out how much your home is worth and your mortgage value here
Generally speaking, you can follow these rules to determine how to sell your home.
If your home is ready to sell OR you have the money to spend to renovate it - Sell on the Market
If your home needs work and you don’t have the money to fix it - Sell to an Investor
