Key facts (checked Oct 11, 2026)
- Program: 10 Del. C. §5062C (Delaware Code). Hotline (800) 220-5424, mortgage.mediation@delaware.gov (Delaware DOJ).
- Deadline: meet a HUD-approved counselor and file a Certificate of Participation within 30 days of service of the mediation notice (§5062C(e)(1)).
- Conference: scheduled 45 to 75 days after the notice is served; no judgment before the day after the scheduled conference (§5062C(d)(1), (n)).
- Data, July 2020 to Dec. 2025: 4,762 mediation-eligible filings, 57.00% participation, 71.90% non-foreclosure resolution or still in mediation (AG report, June 26, 2026).
- Before filing, lenders must send a Notice of Intent to Foreclose and wait 45 days (10 Del. C. §5062B).
Who qualifies for Delaware foreclosure mediation?
Owner-occupants of a one- to four-unit home that is their primary residence qualify, and enrollment is automatic when the lender files foreclosure. The main exception is a loan held by the person who sold you the home, if that seller holds five or fewer such mortgages. The program is free to homeowners; the lender pays the mediation fee.
Sources: 10 Del. C. §5062C(a)-(b), (e)(3); Delaware Department of Justice, Automatic Residential Mortgage Foreclosure Mediation Program (checked Oct 11, 2026). Investors and vacant properties are not covered. If you rent the house out or have moved, other options apply; see avoiding foreclosure in Delaware.
What is the 30-day deadline in Delaware foreclosure mediation?
You have 30 days from the date the notice of foreclosure mediation was served on you to meet with a HUD-approved housing counselor and file a Certificate of Participation with the court. The notice comes attached to the foreclosure complaint. Missing it does not cancel your conference, but it weakens your position.
The statute requires this in §5062C(e)(1). Your counselor helps prepare a proposal, which is due at least 14 days before the conference. If you skip the certificate, you can still attend, but the notice warns that mediation is less likely to succeed and the lender may seek judgment immediately afterward. Checking "no" on the certificate cancels the conference, though you can ask to reinstate it before judgment.
Call a counselor first. Find a free HUD-approved counselor at HUD's counselor page or 800-569-4287, or use DSHA's list of Delaware housing counselors. DSHA's toll-free line is (888) 363-8808.
What happens at a Delaware foreclosure mediation conference?
You, your lender's representative and a neutral mediator meet, now usually by video, to look for an alternative to foreclosure. Options include bringing the loan current, a repayment plan, a loan modification, paying the default over up to 60 months, or a deed in lieu. The mediator cannot force either side to agree.
The conference is scheduled 45 to 75 days after the notice is served (§5062C(d)(1)). You may bring a housing counselor and a lawyer. The mediator may be a court or DOJ employee, a nonprofit legal services employee, or an independent mediator (§5062C(l)). The lender must attend in good faith even if you missed the certificate. The DOJ's June 2026 report notes initial conferences are virtual.
Bring: recent pay stubs or income proof, bank statements, tax returns, a hardship letter, your mortgage statement and the foreclosure papers. Your counselor will tell you exactly what your lender's package requires.
What are the odds of saving your home through mediation?
According to the Delaware Department of Justice, from July 2020 through December 2025 there were 4,762 mediation-eligible foreclosure filings, 57.00% of homeowners participated, and 71.90% of participants either reached a non-foreclosure resolution or were still in mediation. In calendar 2025 alone, 1,161 of 1,336 foreclosure filings were mediation-eligible.
| Period | Eligible filings | Participation | Resolved without foreclosure or still in mediation |
|---|---|---|---|
| Jul 2020 to Dec 2025 | 4,762 | 57.00% | 71.90% |
| Jan 2012 to Dec 2025 | 19,143 | 55.16% | 66.88% |
Source: DOJ report to the General Assembly, Third and Fourth Quarter 2025 (dated June 26, 2026). Read the outcome figure carefully: it counts cases still in mediation, not only finished saves, and a "non-foreclosure resolution" can include a sale or deed in lieu, not just keeping the house. The DOJ's participation overview chart shows 4,815 total cases for the same period, while the letter says 4,762; both show the same percentages. The takeaway is simple: homeowners who participate do far better than those who don't.
What happens before and after mediation in a Delaware foreclosure?
Before filing, the lender must send a Notice of Intent to Foreclose and wait 45 days. After filing, mediation happens, and no judgment can be entered until the day after the scheduled conference. If mediation fails, the case can go to judgment, a sheriff sale and court confirmation of the sale.
| Step | Timing | Source |
|---|---|---|
| Notice of Intent to Foreclose | 45 days before filing | §5062B |
| Complaint and mediation notice served | Day 0 | §5062D |
| Counselor meeting + Certificate of Participation | Within 30 days | §5062C(e)(1) |
| Proposal to lender | 14+ days before conference | §5062C |
| Mediation conference | 45 to 75 days after service | §5062C(d)(1) |
| Earliest judgment | Day after the scheduled conference | §5062C(n) |
Your answer to the complaint is not late if filed on or before the scheduled conference date (§5062D(c)). For what comes after judgment, see New Castle County sheriff sales and Kent County sheriff sales.
What if mediation doesn't work or you want to sell?
If a modification or repayment plan won't work, selling before the sheriff sale usually protects more of your equity than a forced auction. You can raise a sale in mediation and ask the lender for time to close. Talk to your counselor first, and be careful with anyone offering to "save" your home.
Options include a regular listing, a cash sale, a sale with a rent-back, or a mortgage takeover. Once a foreclosure is filed, deals that let you stay, buy back the home, or have someone take over payments are tightly regulated under Delaware's Mortgage Rescue Fraud Protection Act (6 Del. C. ch. 24B), which also covers anyone buying within 20 days before an advertised foreclosure sale. Get advice from a HUD-approved counselor or attorney before signing anything.
Delaware sales close at a licensed Delaware settlement attorney; Maryland and Pennsylvania sales close at a licensed title company or settlement attorney. See selling before foreclosure or call (302) 525-0787.
General information, not legal or tax advice. Delaware sales close at a licensed Delaware settlement attorney; Maryland and Pennsylvania sales close at a licensed title company or settlement attorney.
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Get My Written Offer Call (302) 525-0787Frequently asked questions
Is Delaware foreclosure mediation free?
Yes, for homeowners. The lender owes the mediation fee under 10 Del. C. §5062C(e)(3).
How do I sign up for foreclosure mediation in Delaware?
It is automatic for eligible owner-occupants. To participate fully, meet a HUD-approved housing counselor and file the Certificate of Participation within 30 days of being served the mediation notice.
What if I miss the 30-day deadline?
You can still attend the scheduled conference, but mediation is less likely to succeed and the lender may seek judgment right after it. Call the hotline at (800) 220-5424 right away.
Can the lender get a judgment before mediation?
No. For eligible cases, no judgment may be entered until the day after the scheduled mediation conference (§5062C(n)).
Can I sell my house during foreclosure mediation?
Yes. A sale is one possible outcome. Discuss it with your counselor and the mediator, and be cautious of rescue offers regulated by 6 Del. C. ch. 24B.
Sources
- 10 Del. C. ch. 49, subch. XI (§§5062A-5062D)
- Delaware DOJ: Automatic Residential Mortgage Foreclosure Mediation Program
- Delaware DOJ report, Third and Fourth Quarter 2025 (June 26, 2026)
- Delaware DOJ participation overview, Jul 2020 to Dec 2025
- HUD: Housing counseling
- DSHA: Housing counselors
- 6 Del. C. ch. 24B, Mortgage Rescue Fraud Protection Act
General information, not legal, tax, or financial advice. Facts checked Oct 11, 2026 against the official sources above. Laws, fees, and schedules change; confirm with the office named or your attorney.
