Synopsis:
AN ACT TO AMEND TITLE 10 OF THE DELAWARE CODE RELATING TO FORECLOSURES INCLUDING A FORECLOSURE MEDIATION PROGRAM FOR HOMEOWNERS.
This Bill regulates conduct related to foreclosures in Delaware.
Section 1 establishes the Automatic Residential Mortgage Foreclosure Mediation Program in order to ensure homeowners have an opportunity to meet face-to-face with lender representatives and mediate both retention and non-retention options before a judgment is entered or a sheriff’s sale occurs. This Section codifies an expanded version of the Residential Mortgage Foreclosure Mediation Program currently run by the Superior Court under its Administrative Directive 2011-2, as first established under the Superior Court’s Administrative Directive 2009-3. The Automatic Residential Mortgage Foreclosure Mediation Program established by Section 1 expands access to mediation to all homeowners of owner-occupied residential one-to-four family properties and eliminates financial qualification rules set forth in the existing mediation program. This will ensure that mediation can bring all homeowners facing foreclosure on their residence together in face-to-face meetings with representatives of their lender to address not just possible loan modifications, but other mutually agreeable resolutions short of a sheriff’s sale. Section 1 also requires that plaintiffs pay a court-determined mediation fee in foreclosure actions for which mediation will occur; this fee is to be set by the court in an amount to defray the costs of the mediation program.
Section 2 sets out certain requirements for the filing of a complaint or summons in a mortgage foreclosure action, including that the filing be accompanied by certain documentation related to the notices. Section 2 also extends the period for a defendant to file an answer in mortgage foreclosure actions that are subject to the mediation program established under Section 1 until the date of any scheduled mediation conference.
Section 3 is a technical amendment to Title 10.
Section 1 establishes the Automatic Residential Mortgage Foreclosure Mediation Program in order to ensure homeowners have an opportunity to meet face-to-face with lender representatives and mediate both retention and non-retention options before a judgment is entered or a sheriff’s sale occurs. This Section codifies an expanded version of the Residential Mortgage Foreclosure Mediation Program currently run by the Superior Court under its Administrative Directive 2011-2, as first established under the Superior Court’s Administrative Directive 2009-3. The Automatic Residential Mortgage Foreclosure Mediation Program established by Section 1 expands access to mediation to all homeowners of owner-occupied residential one-to-four family properties and eliminates financial qualification rules set forth in the existing mediation program. This will ensure that mediation can bring all homeowners facing foreclosure on their residence together in face-to-face meetings with representatives of their lender to address not just possible loan modifications, but other mutually agreeable resolutions short of a sheriff’s sale. Section 1 also requires that plaintiffs pay a court-determined mediation fee in foreclosure actions for which mediation will occur; this fee is to be set by the court in an amount to defray the costs of the mediation program.
Section 2 sets out certain requirements for the filing of a complaint or summons in a mortgage foreclosure action, including that the filing be accompanied by certain documentation related to the notices. Section 2 also extends the period for a defendant to file an answer in mortgage foreclosure actions that are subject to the mediation program established under Section 1 until the date of any scheduled mediation conference.
Section 3 is a technical amendment to Title 10.
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