Blog Post

Does a Sheriff Sale mean I am losing my house?

Steven J. Stirparo, Esq. • Aug 11, 2019
delaware bankruptcy attorney

How does a Delaware Bankruptcy Attorney protect your rights?

Yes, if a Sheriff sale of your home is scheduled, and you do not take the necessary steps to prevent it from occurring, you could lose your home. However, before a Sheriff sale can be scheduled in Delaware, it takes at least four to five months for the mortgage foreclosure process to be completed since a mortgage company must first file a mortgage foreclosure lawsuit against the owners of the real estate, serve the homeowners with a copy of the lawsuit, proceed with mandatory foreclosure mediation, which is required in Delaware in most situations, and obtain judgment against the homeowner so that a Sheriff sale of the property can be scheduled. Therefore, as a Delaware bankruptcy attorney, I can tell you that despite threatening statements by mortgage company representatives that you are going to lose your home the next day unless you immediately bring your mortgage payments current, such threats are false and meant to intimidate the homeowner into making payments.
As stated above, Delaware requires mandatory mortgage foreclosure mediation, which means that if the homeowner resides in the property, the homeowners can elect mediation and try to attempt to work out a resolution with the mortgage company that allows the homeowner to keep the property and remain in their home. This generally occurs in the form of a loan modification agreement that brings the mortgage current by adding the mortgage arrears to the principal of the loan and extending the loan term by a certain number of years. Since it takes several months for the mortgage mediation hearing to be scheduled, that gives the homeowner time to provide the mortgage company with the number of financial documents required by the mortgage company in the loan modification process to determine whether the homeowners qualify for a loan modification of their mortgage.

Hire a Delaware Bankruptcy Attorney

In the meantime, the one sure way to stop a Sheriff sale to prevent your home from being sold out from under you is to hire a Delaware bankruptcy attorney (or an attorney in the state that you reside) to file Chapter 13 bankruptcy and propose a repayment plan of your past due mortgage payments over three to five years. By filing Chapter 13 bankruptcy, the “automatic stay” immediately goes into effect to prevent creditors, including your mortgage company, from taking, or continuing, any collection actions against you or a co-debtor who also owns the property with you. It also requires the homeowner to begin making monthly mortgage payments again to their mortgage company so they don’t fall further and further behind in payments while they are proceeding through the loan modification process. Before the homeowner files bankruptcy, the mortgage company refuses to accept monthly payments and insists that the entire amount of past due mortgage payments be made before the mortgage company will accept any monthly payments. Not so once bankruptcy is filed. After bankruptcy is filed, the mortgage company is no longer in the driver’s seat and are required by law to accept monthly mortgage payments going forward.

For this reason, when I meet with a homeowner who is several months behind in mortgage payments, but wants to keep their home, I discuss with the homeowner both the loan modification process and Chapter 13 bankruptcy. Since the loan modification process can take six months to a year, or longer, and there is no guarantee the homeowner will be approved, I recommend that the homeowner immediately file Chapter 13 so that the homeowner can resume making monthly mortgage payments to the mortgage company. This allows the homeowner to stop the bleeding and gets the homeowner back on track in making monthly payments and curing their past due payments. The good news for the homeowner is that even though the homeowner has filed Chapter 13 bankruptcy, he or she can continue with their loan modification without falling further behind in monthly mortgage payments.  

Also, some homeowners before meeting with a Delaware bankruptcy attorney like me have already gone through the loan modification process with unsuccessful results and, therefore, their only option is Chapter 13 bankruptcy. Others are currently going through the process, in which case, I give them the option of either filing Chapter 13 bankruptcy and proceeding with their loan modification or filing Chapter 13 and discontinuing their loan modification efforts. Depending on whether the loan application process has been a smooth or frustrating process for them usually dictates their response. 

A Delaware Bankruptcy Attorney can help you save your home

Lastly, although individuals have the right to file bankruptcy on their own without a bankruptcy attorney, I recommend that you not do so. Bankruptcy law is complicated and requires expertise and experience. Since you are dealing with trying to save your home, which may be one of your most valuable assets, let an experienced lawyer like me assist you in filing bankruptcy to save your home. As a highly experienced Delaware bankruptcy attorney, I have helped thousands of individuals save their home. Therefore, let me do the same for you. 

Please contact Stirparo Law at 302-479-9613 or email stirparolaw@comcast.net to schedule a free one-hour initial consultation. 
Stirparo Law is a debt relief agency that helps people discharge their debts through bankruptcy.  The content of this website is for advertising and general informational purposes only and does not create an attorney-client relationship. 

Personal Injury Attorney Wilmington DE

By Steven Stirparo • 04 Sep, 2019
When it comes to getting the maximum amount of compensation in your claim, a personal injury attorney in Wilmington DE, must be involved. A personal injury attorney from Stirparo Law ensures you get the compensation you deserve.

Personal Injury Law Firm Wilmington DE

By Steven Stirparo • 04 Sep, 2019
A personal injury law firm Wilmington de is there for you at your worst. At Stirparo Law, our goal is to help you get financial compensation for your medical treatment and make up for the wages lost due to your injuries.
bankruptcy lawyer in Delaware

Avoid This One Major Mistake When Filing Bankruptcy

By Steven J. Stirparo, Esq. • 08 Aug, 2019
Although for many people the word “bankruptcy” carries with it a negative stigma, the fact is that bankruptcy saves many individuals and families from financial ruin and restores financial peace and hope to those who have given up. As a bankruptcy lawyer in Delaware for more than two decades, I can tell you from experience that bankruptcy changes lives for the better and can often save you from overwhelming, and oftentimes crushing, debt. Such debt causes an enormous amount of stress, anxiety and worry that interferes with your ability to function at your job and at home. It can also cause you to lose your job and assets such as your house and car and, in some cases, may even cost you your marriage and family. Bankruptcy helps alleviate the stress by discharging such debt. It gives you a fresh start and prevents your creditors from continuing to harass you with non-stop telephone calls day and night trying to pressure you into paying debt you can’t afford with money you don’t have.
Share by: