Tax Foreclosure in Delaware: What Homeowners Need to Know
A guide from AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
Delaware uses a tax lien/tax deed hybrid system. Counties sell delinquent tax obligations at a monition sale (a court-ordered sale), which can result in the transfer of the property itself.
How It Works
Property taxes in Delaware are collected by the county. When taxes become delinquent, the county can petition the Superior Court for a writ of monition under 9 Del. C. § 8726 (New Castle County), 9 Del. C. § 8771 (Kent County), or 9 Del. C. § 8803 (Sussex County). The court orders the sale of the property to satisfy the tax debt.
The property is sold at a public monition sale. The winning bidder receives title to the property, subject to the former owner's right of redemption.
Redemption Period
Under Delaware law, the former property owner has 60 days from the date of the monition sale to redeem the property by paying all delinquent taxes, costs, penalties, and interest. After 60 days, the redemption right expires and the buyer receives clear title.
Key Programs and Exemptions
Senior School Property Tax Credit: Delaware provides a school property tax credit for homeowners 65 and older. The credit amount is set by statute and applied to school district property taxes on the primary residence.
Disabled Veteran Property Tax Exemption: Under 9 Del. C. § 8131, veterans with a permanent, service-connected, 100% disability may qualify for a full exemption from county property taxes on their primary residence.
County Payment Plans: All three Delaware counties (New Castle, Kent, and Sussex) offer payment plan arrangements for delinquent property taxes. Contact your county tax office before the monition process begins.
Where to Get Help
- Delaware Volunteer Legal Services (DVLS): Provides free civil legal assistance. Call (302) 478-8680 or visit dvls.org.
- Community Legal Aid Society, Inc. (CLASI): Call (302) 575-0660 or visit declasi.org.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or visit hud.gov/counseling.
Take Action
If you have received a monition notice, you have limited time to act. Contact your county tax office and a legal aid attorney immediately.
Visit auctionblock.org/get-help for free resources and referrals.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Laws and programs change. Verify current rules with your county tax office or a licensed attorney. AuctionBlock.org is a mission-driven company.