DE HB57

Requires mortgage lenders to provide homeowners with a 45-day notice of intent to foreclose before filing a foreclosure action on owner-occupied one-to-four family residential properties.

Notice must include information about loss mitigation programs (federal and proprietary), Delaware Emergency Mortgage Assistance Program (DEMAP), approved housing counseling agencies, reinstatement instructions, and a 12-month accounting of the mortgage obligation.

Mandates lenders file an affidavit before judgment or sale confirming the homeowner was offered opportunity to apply for loss mitigation programs and stating whether the loan is ineligible for such programs.

Dismisses foreclosure actions without prejudice if the homeowner was not provided the required opportunity to apply for relief or if the affidavit contains false statements, with no fees charged to the defendant.

Takes effect 120 days after enactment, applying to foreclosure actions commenced after the effective date and pending actions that have not yet reached judgment or sale.