Automatic foreclosure mediation for owner-occupied homes
Del. Code tit. 10, § 5062C(a)–(b)
In plain words
Delaware runs an Automatic Residential Mortgage Foreclosure Mediation Program for owner-occupied 1–4 family homes. A notice of foreclosure mediation must come with the complaint. Taking part lets you meet with the lender and a mediator to look for an alternative to foreclosure. File your answer on time unless a lawyer tells you otherwise.
Who is protected
Owner-occupants of 1–4 family primary residences in Delaware foreclosure cases.
When it applies
- Only in Delaware.
- Only after a notice of default or once a sale date is set.
- Only if the home is your primary residence.
What you can do
Get ready for court
Read the mediation notice that came with the complaint, attend the session, and bring income and hardship documents.
Deadline: The mediation date in the notice; answer within 20 days of service unless told otherwise
Open the toolRead the Delaware guide
Our Delaware page explains the whole process step by step, with its sources and free local help.
Open the tool
Honest limits
- Mediation does not guarantee a modification.
- This is general education, not legal advice. Laws change and details depend on your papers and your court; check the current law or ask a lawyer or legal aid.
The law
- State lawAutomatic foreclosure mediation program
Del. Code tit. 10, § 5062C(a)–(b)
Exact part: (a)–(b)
What it says: Establishes automatic mediation for owner-occupied 1–4 family primary residences.
Read the official texthttps://delcode.delaware.gov/title10/c049/sc11/index.html
Court cases
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicLage v. Ocwen Loan Servicing LLC
Lage v. Ocwen Loan Servicing LLC, 839 F.3d 1003 (11th Cir. 2016)
a servicer's duty to evaluate a loss-mitigation application depends on its being submitted more than 37 days before the sale date scheduled at that time
- Homeowner lostSame topicGresham v. Wells Fargo Bank, N.A.
Gresham v. Wells Fargo Bank, N.A., 642 F. App'x 355 (5th Cir. 2016) (per curiam) (unpublished)
the federal dual-tracking bar applies only when the servicer receives a complete loss-mitigation application more than 37 days before the foreclosure sale
- Homeowner lostSame topicBoren v. U.S. National Bank Ass'n
Boren v. U.S. Nat'l Bank Ass'n, 807 F.3d 99 (5th Cir. 2015)
a lender may abandon a prior acceleration by giving notice that it seeks less than the full accelerated balance, which restarts the four-year limitations period
- Homeowner lostSame topicWhittier v. Ocwen Loan Servicing, L.L.C.
Whittier v. Ocwen Loan Servicing, L.L.C., 594 F. App'x 833 (5th Cir. 2014) (per curiam) (unpublished)
a RESPA claim against a servicer fails without evidence of actual damages caused by the violation
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
Related rights
Right to a notice of intent to foreclose 45 days before a case is filed
Del. Code tit. 10, § 5062B(a)(1)
For an owner-occupied 1–4 family home in Delaware, a foreclosure case cannot be filed until 45 days after the lender sends a notice of intent to foreclose. Delaware foreclosures go through court, and after judgment the sheriff’s sale must be advertised and you must be notified before it.
Read this rightThe right to be heard in court, and to speak for yourself
U.S. Const. amend. XIV, § 1Due Process Clause
Due process means that before the government, through a court, takes your property, you must get a meaningful chance to be heard. In federal court, you have a legal right to present your own case without a lawyer. Most state courts also let people represent themselves, under state rules.
Read this rightPause a court case while on military duty
50 U.S.C. § 3932(b)(1)
If you are in military service and get sued, the court must pause the case for at least 90 days if you ask and show that your duty keeps you from appearing. Before a court can enter a default judgment against you, the other side must file a sworn statement saying whether you are in the military, and the court may appoint a lawyer for you.
Read this rightFHA loans: a meeting before foreclosure
24 C.F.R. § 203.604(a)(1)
If you have an FHA-insured mortgage, your lender must meet with you — or make a reasonable effort to arrange a meeting — before three full monthly payments are unpaid and at least 30 days before starting foreclosure. A reasonable effort means at least two verifiable attempts to contact you. HUD now decides how the meeting may be held.
Read this rightFHA loans: the lender must look at ways to avoid foreclosure
24 C.F.R. § 203.605(a)
If you have an FHA-insured mortgage, your lender must review loss-mitigation options every month before four full payments are unpaid, and take the appropriate action. FHA options can include special forbearance, loan modification, a partial claim (an interest-free second loan from HUD to cover arrears), a pre-foreclosure sale, or a deed in lieu.
Read this rightNo foreclosure filing until you are more than 120 days behind
12 C.F.R. § 1024.41(f)(1)
Your servicer cannot make the first notice or filing to start a foreclosure until your loan is more than 120 days delinquent. This gives you time to apply for help. There are narrow exceptions, such as a due-on-sale violation.
Read this right