Delaware Foreclosure Laws

Most Delaware foreclosures take between seven and ten months. All foreclosures in Delaware are judicial foreclosures and include court intervention.

Pre-Foreclosure

The lender begins the foreclosure process by filing documents in court. One this happens, the debtor is notified to appear in court within 20 days to answer the complaint. If there is a problem finding the debtor, efforts must be made to reasonably notify the debtor of the filing, a process that can take up to three months. If the debtor does not answer to the complaint or does not provide reasons why the foreclosure should not take place, the court may decide that the debtor is in default. If this happens, eleven days after the court date the lender can ask the county sheriff to schedule a foreclosure sale.

Notice of Auction

The sheriff must correctly give notice of the sale and advertise the sale publicly, a process that can take two to three months. At least fourteen days before the auction, the sheriff must post the notice of sale in public places and on the property itself. This notice of sale, or notice of action, as it is sometimes known, needs to include details about the property address, property description, and the location and time of the foreclosure sale. At least ten days before the auction, the notice must be delivered to the debtor as well. In addition, the notice of auction needs to appear in two local newspapers, appearing three times a week or less for two weeks before the auction.

The Foreclosure Sale

The foreclosure sale in Delaware usually takes place at the local courthouse or at the property being sold. The auction is usually conducted by the sheriff. Once one bidder has won, the sale must be confirmed within one to three months. When this happens, ownership of the property is transferred to the winning bidder. Until the sale is confirmed, the debtor may choose to contest the auction. However, the debtor has no redemption period or rights after the auction has taken place.