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Delaware Emergency Mortgage Assistance Program, an Option to Explore Prior to Filing for Bankruptcy

Many people who are experiencing difficulties with mortgage payments are not aware of the Delaware Emergency Mortgage Assistance Program. This program helps homeowners by reinstating the delinquent mortgage loan, including principle, interest, taxes and insurance and assisting with their monthly mortgage payments going forward for a period of up to 24 months. This program is an option that should be explored prior to filing for bankruptcy.

This statewide program provides Delaware homeowners with assistance in preventing mortgage foreclosure on their primary residence due to a loss of 15% or more their income from one of the following hardships:

  1. Loss of employment or reduction in hours as a direct result of the downturn in the economy; or
  2. Inability to work or reduction in hours able to work due to an injury or illness of themselves or for an immediate family member for whom they are the primary caregiver.

Borrower Qualifications

  1. To qualify, a borrower’s current gross family income cannot exceed:
CountyMaximum Household Income
New Castle$92,460
Kent & Sussex$83,260
Income limits as of 6/2011 and are subject to change annually
  1. Be 90 days or more delinquent on the first mortgage of their primary residence at the time of the application.
  2. Prior to hardship, Debt to Income ratios will also be considered in determining eligibility

Loan Terms

  1. There is no interest charged on this loan.
  2. The maximum loan amount is $30,000.
  3. Terms: The program will pay the delinquent balance and ongoing monthly payments not to exceed 24 months or $30,000 (whichever is less) for qualified applicants.
  4. Will be recurred by a lien recorded on the property.
  5. Borrowers are required to contribute a portion of their mortgage payment each month based on a percentage of their gross monthly income.
  6. Required payment contributions are due to DSHA on the first of each month. Failure to make payments to DSHA on time will result in termination of further monthly payment assistance and possible ineligibility for forgiveness of their loan.
  7. The loan is forgivable. Beginning on the anniversary date of the final benefit payment provided by DSHA, 20% of the loan will be forgiven over each of the next 5 years provided the borrower does not default of their mortgage during the forgiveness period. Under certain conditions partial or full repayment may be required if the property is refinanced, sold or title is transferred, prior to the end of the 5 year forgiveness period.
  8. Borrower is required to immediately advise DSHA of any changes in their employment or income during the benefit period. Borrowers who fail to do so will not be eligible for the forgiveness provision of the loan.
  9. Borrower must reside in the property during the benefit period. Borrowers who abandon the property without notifying DSHA will not be eligible for the forgiveness provision of the loan.
  10. With explicit permission from DSHA in advance, in some circumstance the borrower may sell or refinance the property and still have some or their entire loan forgiven.

How To Apply

  1. Contact a participating Housing Counselor. You can locate their information at .
  2. Make sure you meet all borrower requirements.
  3. Ensure the property meets all requirements.
  4. Please view the DEMAP Brochure

Huang Law LLC is a Debt Relief law firm as defined by 11 U.S.C. 528. We help people file for Bankruptcy Relief under the Bankruptcy Code. The information contained on this website is not to be construed as legal advice. It is not intended to solicit or form an attorney-client relationship. We do not guarantee any result and prior results do not guarantee a similar outcome. This is an attorney advertisement and this website is for informational purposes only.