State and County officials are trying to help people whose homes have been foreclosed on become aware of resources available to them.
Delaware has the second highest foreclosure rate in the country after New Jersey, according to RealtyTrac.com.
Delaware Superior Court, the Department of Justice and the New Castle County Sheriff’s Office want citizens to know even if their home goes to sheriff sale, they may still be entitled to some money. Any proceeds left after liens and fees are paid by the sale belong to the former homeowner.
“All the fees that are charged toward the case, if those fees are less than what the property’s sold for, and there are no other liens, that case then has what’s called excess proceeds. Those proceeds are due to the defendant,” said Real Estate Coordinator for the New Castle County Sheriff’s Office Ray Rhodes.
Rhodes says 15 to 20 percent of Sheriff sales end up with excess proceeds, usually ranging from $1,000 to $2,000. He says most people don’t know they’re due that money, and it’s hard for the Sheriff’s Office to find them after a sale.
“The person going through this time, it’s very traumatic for them,” said Rhodes. “So a lot of times they just pack up and leave because they don’t want the sheriff to show up and tell them that they have to be evicted. So when they up and leave we have no way of knowing where they went to.”
Within 90 days after Sheriff’s sale, the previous owner should contact the Sheriff’s Office to see if their property had excess proceeds. After 90 days, excess proceeds can be retrieved from the state prothonotary’s office, but Rhodes says that’s a more difficult process requiring legal representation.
Rhodes say his office plans to make more efforts to raise awareness, including presenting at civic association meetings.
Pre-foreclosure resources are also available through through the Department of Justice Consumer Protection Unit— and include the Mandatory Residential Mortgage Foreclosure Mediation Program.
The Delaware State Housing Authority is hosting a foreclosure workshop Monday afternoon in Dover and one Tuesday afternoon in Wilmington.
