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What can I do when I am delinquent on my mortgage in Delaware?

On Behalf of | Aug 7, 2014 | Mortgages

A sudden financial crisis can hit nearly any Delaware household. Perhaps someone loses their job, or suffers a medical emergency that involves an expensive hospital stay and a long recovery time. Even families that with savings for a rainy day can find themselves having to miss a mortgage payment, in order to keep food on the table.

No matter why a homeowner is unable to make a mortgage payment, becoming delinquent could put him or her at risk of being foreclosed upon. The prospect of losing your home is terrifying to most people. Fortunately, Delaware residents may be able to catch up under a state program.

It’s called the Delaware Emergency Mortgage Assistance Program, commonly known as DEMAP. Homeowners in trouble may be able to get help preventing foreclosure, as long as they meet certain conditions. The household must have lost at least 15 percent of its income due to:

  • Job loss or underemployment “due to the economy.”
  • Injury or illness, suffered either by the homeowner or an immediate family member that the homeowner is taking care of.

In addition, the applicant must be a resident of Delaware, and be at least 90 days behind on their mortgage. However, they must also be able to show that they reasonably expect to be able to resume mortgage payments, meet income requirements, and be able to spend 31 percent of their monthly income toward mortgage payments.

Qualifying homeowners can obtain a DEMAP loan that will reinstate the mortgage and provide financial assistance on the loan for up to 24 months. This could provide serious relief for many people.

However, others may not qualify for DEMAP, but still need help with a delinquent mortgage. Those with questions about what to do in this situation may benefit from talking with an attorney.