Behind on Your Mortgage in Delaware? Here's Where to Get Help
Delaware homeowners who are behind on mortgage payments or facing a foreclosure filing have more options than many realize. This page will help you find help. Assistance, as listed below, is available through the state housing authority, the Attorney General's office, nonprofit housing counselors, and legal aid — and many of these services are free. The key is reaching out before the situation gets worse, because the further a foreclosure proceeds through the courts, the fewer paths are available.
Delaware is a judicial foreclosure state. That means a lender must file a lawsuit and go through the court system before they can take a home. The process typically takes several months to over a year, and that window is when homeowners have the most leverage to negotiate a solution. Once a sheriff's sale date is scheduled, options narrow significantly.
The primary state agency for mortgage and foreclosure assistance is the Delaware State Housing Authority (DSHA). DSHA does not administer direct mortgage payments, but it maintains a network of certified housing counselors across the state and oversees foreclosure prevention resources, including referrals to programs and specialists who can help. DSHA can be reached at 888-363-8808 or at its website: https://www.destatehousing.com/maintain/foreclosure-prevention/.
Delaware's Mandatory Foreclosure Mediation Program
One of the most important protections for Delaware homeowners is the Automatic Residential Mortgage Foreclosure Mediation Program, which has been in effect since 2012. When a lender files a foreclosure complaint, Delaware law requires that the homeowner be given the opportunity to participate in mediation — a structured meeting with the lender and a neutral mediator present — before the case can proceed through the courts.
This program has produced positive results for Delaware homeowners who have used it. Outcomes have included loan modifications that permanently reduced monthly payments, repayment agreements that allowed homeowners to catch up on what they owe over time, and forbearance arrangements that paused payments temporarily during a hardship period. The program does not guarantee any specific result, but it requires the lender to engage directly and seriously with the homeowner before proceeding.
To apply: The mediation program is administered by the Attorney General's Office of Foreclosure Prevention and Financial Education (OFP). This office helps homeowners understand the mediation process, connects them with housing counselors who can prepare them for mediation sessions, and can hold servicers accountable when they fail to communicate fairly with borrowers. Homeowners who receive a foreclosure notice should contact the OFP as early as possible. Call the foreclosure Hotline at 800-220-5424 or see https://attorneygeneral.delaware.gov/fraud/cpu/automediation/.
Free Legal Help for Homeowners Facing Foreclosure
Having an attorney at the mediation table significantly improves a homeowner's position, and in Delaware, free legal representation is available through Community Legal Aid Society, Inc. (CLASI) — the state's oldest and largest civil legal aid organization, with offices in Wilmington, Dover, and Georgetown. CLASI's housing unit handles residential mortgage foreclosure cases and works directly within the state's mediation program.
- To qualify for free representation, applicants generally must meet income guidelines. CLASI accepts applications by phone and can often move quickly when a foreclosure filing has already been made.
CLASI: Call 302-575-0660 or view https://www.declasi.org/.. We also have a guide to free legal aid in Delaware.
Nonprofit Housing Counselors Across Delaware
Several established nonprofits across Delaware, that have multiple offices, provide free one-on-one help for homeowners behind on their mortgage. NeighborGood Partners (formerly NCALL Research, serving the Delmarva Peninsula since 1976) operates offices in Dover, Georgetown, Newark, Middletown, and Wilmington, and specializes in foreclosure prevention, homeownership education, and financial coaching. Counselors work with homeowners to review their loan, communicate with servicers, and develop a realistic plan. Services are available in English, Spanish, and Haitian Creole.
- First State Community Action Agency offers free housing counseling through offices in Dover, Georgetown, and New Castle, helping homeowners in all three counties navigate mortgage delinquency, repayment options, and lender communication. The agency is a HUD-approved comprehensive counseling organization and part of the national community action network.
Both organizations serve as partners in Delaware's foreclosure mediation system and can help homeowners prepare documentation, understand their rights, and attend mediation sessions with a stronger case. Information on these and other HUD-certified counseling agencies across Delaware can be found on the Delaware HUD-certified housing counseling agencies page.
Scam Warning
Foreclosure scams are common in Delaware and across the country. If anyone — including a company, a neighbor, or someone who approaches you with an offer — asks for upfront money to save your home, negotiate with your lender, or guarantee a loan modification, that is a scam. Real help from housing counselors, legal aid attorneys, and state agencies is always free.
The Attorney General's Mortgage Fraud Task Force(website: https://attorneygeneral.delaware.gov/mortgageforeclosure) investigates these cases. Report any suspicious contact at 800-220-5424.
Help for Wilmington Seniors
Homeowners in the City of Wilmington who are 62 or older and at risk of losing their home because of unpaid property taxes or past-due water and sewer bills may qualify for a grant of up to $3,000 through the Wilmington Senior Tax Assistance Program. This is a city-run program separate from state foreclosure resources. Contact the City of Wilmington directly for eligibility and application details: https://www.wilmingtonde.gov/residents/senior-citizen-exemptions-and-programs.
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