Lost Your Job? What to Do About Your Delaware House

Step one: call your servicer early

The best time to call your mortgage company is before you fall behind. Servicers have more options for borrowers who reach out early.

Ask about:

• Forbearance: a temporary pause or reduction in payments. You still owe the money later, so ask exactly how it gets repaid.
• Repayment plan: catching up on missed payments over several months.
• Loan modification: a permanent change to your loan terms.

Write down the date, the person you spoke to, and what they said. Get any agreement in writing. Under federal rules, a servicer generally cannot start foreclosure until a loan is more than 120 days delinquent, which gives you some time, but not unlimited time.

Free help in Delaware

You do not have to figure this out alone, and you should not pay anyone for help that is available free.

A note on DSHA's Delaware Emergency Mortgage Assistance Program (DEMAP): it is not currently accepting applications. Check the DSHA foreclosure prevention page for updates rather than relying on it.

Also apply for unemployment benefits right away, and review which bills you can pause or reduce. Housing counselors can help you build a budget.

Delaware's foreclosure protections

Delaware has several protections for owner-occupied homes with 1 to 4 units:

1. Notice of Intent to Foreclose: under 10 Del. C. §5062B, the lender must mail you a notice and wait 45 days before filing. The notice lists the cure amount and resources.
2. Automatic mediation: under §5062C, free mediation is scheduled 45 to 75 days after the mediation notice is served with the foreclosure complaint, and no judgment can be entered until after it.
3. Loss-mitigation affidavit: under §5062A, the lender must file one before judgment or sale.

Learn how mediation works on the Attorney General's mediation page and in our guide to avoiding foreclosure in Delaware.

When selling makes sense

Selling becomes worth considering when a new job is not likely soon, the payment will not fit your budget even after help, or you have equity you do not want to lose. A sale on your terms beats a sheriff sale, where you do not control the price.

Compare the net results with our cash vs. list calculator.

Know the Delaware rescue-fraud rules

If you are behind on your mortgage, be careful with any buyer offering to let you stay, buy it back later, take over your payments, or protect your credit.

A standard sale, where you move out at closing and the lender is paid off in full, is the simplest option to evaluate. Our foreclosure guide covers every alternative.

Watch out for rescue scams and bad contracts

People in financial stress are prime targets for scams. Your Notice of Intent to Foreclose includes a warning about foreclosure rescue scams for a reason. Red flags include:

• Anyone who asks for an upfront fee to save your home.
• Pressure to sign the deed over "just for now" so you can stay.
• Advice to stop talking to your lender or counselor.
• Contracts you are not given time to read or take to a lawyer.

Delaware's new wholesaling law also protects sellers. If you sign with someone who plans to assign your contract to another buyer for a fee, you can generally cancel until midnight of the 21st calendar day after signing or until closing, whichever comes first. Our guide to the 2026 Delaware wholesaling law explains your rights.

Build a 90-day plan

A short written plan keeps panic from making decisions for you. Try breaking the next three months into steps:

1. This week: file for unemployment, call your servicer, and call a housing counselor.
2. Within 30 days: list every bill, cut what you can, and send any hardship paperwork your servicer asks for.
3. Within 60 days: see where the job search and hardship request stand. Get a rough value for the house and a payoff figure.
4. By 90 days: decide. If income is back or a plan is approved, stay. If not, sell while you still have time and choices.

Selling early, before a foreclosure is filed, usually leaves more options and more equity than selling late.

Where Silverside Home Buyers fits

If you have tried hardship options and selling is the right call, we can help. We buy Delaware houses as-is and can close fast or on a date you choose.

• A standard cash sale, where the loan is paid off at closing and any remaining equity goes to you.
• Fix & List if you have time and equity and want a retail sale.

We will tell you honestly if waiting for mediation or a modification looks better for you. Call (302) 798-8655.

General information, not legal or tax advice.

Frequently asked questions

Sources

• DSHA Foreclosure Prevention
• Delaware AG: Automatic Foreclosure Mediation
• 6 Del. C. Ch. 24B (Mortgage Rescue Fraud Protection)

General information, not legal, tax, or financial advice. Laws, fees, and schedules change. Confirm with the office named or your attorney.