I’m a single mom and lost my job a few months ago. I submitted an application to my lender asking it to modify my mortgage and reduce my monthly payments, but it denied my request. I recently found a new job that pays well, but the house is now in foreclosure. I want to keep my home. Is there any way for me to get it back if the foreclosure goes through? I live in Delaware.
No, you can’t get the home back after the foreclosure. However, you do have up until the court confirms the foreclosure sale to pay off the full amount of the unpaid loan and keep the house. This is called “redeeming” the home. (You can also reapply for a mortgage modification, which we’ll discuss below.)
When You Can Redeem Your Home in a Delaware Foreclosure
In Delaware, you do not have the right to redeem your home after the foreclosure sale, but you do get what is called an "equitable right of redemption" prior to the sale (Del. Code Ann. tit. 10, §§ 5066). During this time you can pay off the total debt and redeem the home in order to keep it. (Learn more general information about the right of redemption.)
After the foreclosure sale takes place, the court must confirm it to complete the process. This usually happens 30 days to 60 days after the sale date. You can redeem the home at any time before the confirmation, but after that you won’t get another opportunity to get your house back. (Learn more general information about the equitable right of redemption.)
How Much You'll Have to Pay to Save Your Home
In order to redeem, you must pay the full amount of the unpaid loan, plus all other lawful charges such as interest, attorney's fees, and costs. To find out the exact procedures for redeeming your home, check with the court or consult with a Delaware attorney.
Take Action to Save Your Home as Early as Possible
In Delaware, foreclosures are judicial, which means the lender files a lawsuit in court to foreclose your home. The process takes around six months to a year (or more) to complete, but you still want to explore alternatives to foreclosure as soon as possible. (To learn more about foreclosure laws and procedures in Delaware, visit Nolo’s Delaware Foreclosure Law Center.) This will give you more options to save the property. For example, you could:
- pay off the past-due amounts to reinstate (catch up on) the loan, or
- try to work out an alternative to foreclosure that will allow you to keep the property, such as a mortgage modification, forbearance agreement, or repayment plan.
Even though your lender previously denied your mortgage modification request, your circumstances have changed so you should consider submitting another application. Since you now have a job, you could be eligible for a loan modification or you might qualify for a repayment plan.
Finding Delaware’s Foreclosure Laws
To find the statutes that discuss foreclosure sales in Delaware, go to Title 10, Chapter 49, Subchapter XI of the Delaware Code.