Delaware Counties
STATE AUCTION PROCESS IN DELAWARE
Delaware is a tax lien state. In Delaware, tax lien certificates are sold at tax sales, where investors purchase the liens on properties with delinquent taxes. The winning bidder of a tax lien certificate pays the delinquent taxes on behalf of the property owner. The property owner is then responsible for repaying the investor, along with any interest or penalties, within a specified redemption period. If the owner fails to redeem the property by paying off the lien, the investor may eventually foreclose on it.
Tax Lien Process in Delaware
The tax lien process in Delaware follows a tax sale system, where tax liens on properties with delinquent taxes are auctioned off to investors. Delaware performs county-level tax sales. The county government auctions off tax lien certificates once a year, on average.
When property owners fail to pay their property taxes in Delaware, the county places a tax lien on the property. The county announces the upcoming tax sale, including the date, time, and location. This information is typically published in local newspapers and on the county’s official website.
The tax lien certificates are auctioned off to interested investors during the tax sale. Bidders compete to purchase the tax liens by offering the lowest interest rate or highest premium. Delaware performs county-level tax sales. The bidder with the lowest interest rate or highest premium wins the tax lien certificate. They become the holder of the lien on the property and are entitled to the delinquent tax amount, plus any accrued interest and penalties.
After the tax sale, the property owner has a redemption period to pay off the tax lien and redeem the property. The redemption period in Delaware is typically six months from the date of the tax sale.
If the property owner redeems the tax lien within the redemption period, the investor receives the full amount of the delinquent taxes, along with any accrued interest and penalties. However, if the property owner fails to redeem the tax lien, the investor may take further legal action to foreclose on the property.
When property owners fail to pay their property taxes in Delaware, the county places a tax lien on the property. The county announces the upcoming tax sale, including the date, time, and location. This information is typically published in local newspapers and on the county’s official website.
The tax lien certificates are auctioned off to interested investors during the tax sale. Bidders compete to purchase the tax liens by offering the lowest interest rate or highest premium. Delaware performs county-level tax sales. The bidder with the lowest interest rate or highest premium wins the tax lien certificate. They become the holder of the lien on the property and are entitled to the delinquent tax amount, plus any accrued interest and penalties.
After the tax sale, the property owner has a redemption period to pay off the tax lien and redeem the property. The redemption period in Delaware is typically six months from the date of the tax sale.
If the property owner redeems the tax lien within the redemption period, the investor receives the full amount of the delinquent taxes, along with any accrued interest and penalties. However, if the property owner fails to redeem the tax lien, the investor may take further legal action to foreclose on the property.
Foreclosure in Delaware
Delaware allows both judicial and non-judicial foreclosure processes.
While, judicial foreclosure requires the lender to file a lawsuit and obtain a court order to foreclose, non-judicial foreclosure involves the lender following a specific process outlined in the mortgage or deed of trust.
To initiate a foreclosure process in Delaware, the lender must typically follow the steps outlined in the mortgage or deed of trust. If the mortgage or deed of trust contains a power of sale clause, allowing for non-judicial foreclosure, the lender can proceed with that process. If not, the lender must file a lawsuit in court to initiate a judicial foreclosure.
The foreclosing party, whether it’s the lender or a trustee, has the responsibility to follow the proper legal procedures for foreclosure. This includes providing the required notices to the borrower, advertising the foreclosure sale, and conducting the sale in accordance with the law. The foreclosing party must act in good faith and adhere to all applicable laws and regulations.
The Foreclosure Process in Delaware consists of the following steps-
Notice Requirements: In Delaware, the lender must provide the borrower with a notice of default and intent to foreclose at least 30 days before initiating foreclosure proceedings.
Redemption Period: Delaware does not provide a statutory right of redemption for the borrower after a foreclosure sale. Once the foreclosure sale is complete, the borrower typically loses ownership of the property.
Tax Sales: In Delaware, tax sales are conducted by county governments to recover delinquent property taxes. The county will usually hold a tax sale auction, where interested buyers can bid on tax sale certificates or tax lien certificates.
Tax Lien Certificates: Delaware issues tax sale certificates to successful bidders at tax sales. These certificates represent a lien on the property and allow the investor to earn interest on the outstanding taxes. The property owner has a specific period to redeem the tax lien certificate by paying the outstanding taxes plus interest to the certificate holder.
Tax Deeds: Delaware does not issue tax deeds directly to investors. If the property owner fails to redeem the tax lien certificate within the specified redemption period, the certificate holder can apply for a treasurer’s tax deed. This process transfers the ownership of the property to the certificate holder.
While, judicial foreclosure requires the lender to file a lawsuit and obtain a court order to foreclose, non-judicial foreclosure involves the lender following a specific process outlined in the mortgage or deed of trust.
To initiate a foreclosure process in Delaware, the lender must typically follow the steps outlined in the mortgage or deed of trust. If the mortgage or deed of trust contains a power of sale clause, allowing for non-judicial foreclosure, the lender can proceed with that process. If not, the lender must file a lawsuit in court to initiate a judicial foreclosure.
The foreclosing party, whether it’s the lender or a trustee, has the responsibility to follow the proper legal procedures for foreclosure. This includes providing the required notices to the borrower, advertising the foreclosure sale, and conducting the sale in accordance with the law. The foreclosing party must act in good faith and adhere to all applicable laws and regulations.
The Foreclosure Process in Delaware consists of the following steps-
Notice Requirements: In Delaware, the lender must provide the borrower with a notice of default and intent to foreclose at least 30 days before initiating foreclosure proceedings.
Redemption Period: Delaware does not provide a statutory right of redemption for the borrower after a foreclosure sale. Once the foreclosure sale is complete, the borrower typically loses ownership of the property.
Tax Sales: In Delaware, tax sales are conducted by county governments to recover delinquent property taxes. The county will usually hold a tax sale auction, where interested buyers can bid on tax sale certificates or tax lien certificates.
Tax Lien Certificates: Delaware issues tax sale certificates to successful bidders at tax sales. These certificates represent a lien on the property and allow the investor to earn interest on the outstanding taxes. The property owner has a specific period to redeem the tax lien certificate by paying the outstanding taxes plus interest to the certificate holder.
Tax Deeds: Delaware does not issue tax deeds directly to investors. If the property owner fails to redeem the tax lien certificate within the specified redemption period, the certificate holder can apply for a treasurer’s tax deed. This process transfers the ownership of the property to the certificate holder.
County Specific Information
While the overall process of tax lien sales is similar across the state, there may be slight differences in terms of specific timelines, redemption periods, interest rates, and other requirements. Each county in Delaware, including New Castle County, Kent County, and Sussex County, has its own local government and tax administration. They may have their own set of rules and regulations governing tax lien sales. It is important for investors to review the specific guidelines and requirements set by the county where they are interested in purchasing tax liens.
You can find details of the auction procedures of the different counties in Delaware in the table below –
You can find details of the auction procedures of the different counties in Delaware in the table below –
| New Castle | Kent | Sussex | |
|---|---|---|---|
| Location and Time | 9:00 am, city/county building | Varies, Kent county administrative building | 9:30 am, Sussex County Sheriff's office |
| Deposit and Payment | 20% deposit or full payment, late charges apply | $2000 deposit, balance due within specified time | 100% payment for monition, 20% deposit for mortgage |
| Forms of Final Payment | cashier’s check, certified check, money order, personal check, or business check | cashier’s check, certified check, personal or business check, or money order, made payable to the Kent County Sheriff | cash, certified check, or cashier's check made payable to the Sheriff of Sussex County |
| Assignment of Bid | Written submission with notarized signature | NA | NA |
| Bidding Registration | https://www.newcastlede.gov/DocumentCenter/View/266 | https://www.co.kent.de.us/sheriffs-office.aspx | In person before the start of the Sheriff Sale between 9:00 a.m. and 9:30 a.m |
| Foreclosure Listings | https://www.newcastlede.gov/1388/Sale-Lists | https://www.co.kent.de.us/sheriffs-office.aspx | https://sussexcountyde.gov/sheriff-sales |
| Sheriff Sale Registration | Required before sale | $5000 initial deposit, identification required | $4000 deposit, registration with valid ID |
| Time Frame to Pay the Whole Amount | The third Monday of the month following the sale | By 2:00 PM the day of the sale | Third Monday of the following month |
| In case of failure of payment | A $500 late payment fee will be charged and deducted from the 3rd Party Buyer’s Deposit. | 20% down payment will be forfeited. | Deposit is forfeited |
In Summary
1.Type of auction- Tax Lien
2.Time and location- Varies according to county
3.Redemption Period- 6 months from the date of tax sale
4.Type of foreclosure- Both judicial and non- judicial
5.Foreclosure redemption period- Delaware does not provide statutory right of redemption
2.Time and location- Varies according to county
3.Redemption Period- 6 months from the date of tax sale
4.Type of foreclosure- Both judicial and non- judicial
5.Foreclosure redemption period- Delaware does not provide statutory right of redemption
Online Auction Resources
| County | Clerk Website |
|---|---|
| New Castle | https://www.newcastlede.gov/ |
| Kent | https://www.co.kent.de.us/clerk-of-the-peace-office.aspx |
| Sussex | https://sussexcountyde.gov/ |
New Castle
FORECLOSURE SALE
| CATEGORIES | SPECIFICATIONS |
|---|---|
| Location of Sale | City/County Building, 800 N. French Street, Wilmington, DE 19801. |
| Day & Time of Sale | 9:00 a.m. on the second Tuesday of each month. |
| Viewing Foreclosure Files | https://www.newcastlede.gov/DocumentCenter/View/266 |
| Bidding Registration | https://www.newcastlede.gov/DocumentCenter/View/266 |
| Deposit amount required to bid | 20% deposit |
| Total Amount Paid after winning the bid | the bid amount, additional fees, and any outstanding balances. |
| Time Frame to pay the whole amount | the third Monday of the month following the sale |
| Registry of the Court Service Charge | |
| Documentary Stamp Taxes | |
| Forms of Final Payment | cashier's check, certified check, money order, personal check, or business check |
| In Case of Failure of Payment, What will happen to Bidding Deposit Amount | , a $500 late payment fee will be charged and deducted from the 3rd Party Buyer's Deposit. |
| Clear Title of Property (No of days after filling the certificate of sale) |
TAX DEED
| CATEGORIES | SPECIFICATIONS |
|---|---|
| Application Fee | |
| Life of Tax Certificate(in years) | |
| Deposit amount required to bid | 100% of the bid amount |
| Location of Sale | City/County Building, 800 N. French Street, Wilmington, DE 19801. |
| Tax Collector's Website | https://www.newcastlede.gov/232/Taxes |
| Viewing Tax Deed Files | https://www.newcastlede.gov/DocumentCenter/View/266 |
| Bidding Registration | https://www.newcastlede.gov/DocumentCenter/View/266 |
| Registry of the Court Service Charge/ Recording fee | |
| Documentary Stamp Taxes | |
| Total Amount Paid after winning the bid | the bid amount, additional fees, and any outstanding balances. |
| Forms of Final Payment | cashier's check, certified check, money order, personal check, or business check |
| Time Frame to pay the whole amount | the third Monday of the month following the sale |
Kent
FORECLOSURE SALE
| CATEGORIES | SPECIFICATIONS |
|---|---|
| Location of Sale | Kent County Administrative Complex Building - Levy Court Chambers, 555 Bay Rd., Dover, DE 19901. |
| Day & Time of Sale | the first Thursday of every month |
| Viewing Foreclosure Files | https://salesweb.civilview.com/Sales/SalesSearch |
| Bidding Registration | In person before the start of the Sheriff Sale |
| Deposit amount required to bid | non-refundable deposit of $2,000 for each property purchased. |
| Total Amount Paid after winning the bid | 20% of the winning bid on the day of the sale, with $2,000 due when the winning bid is accepted. |
| Time Frame to pay the whole amount | 20% down payment by 2PM and full amount within 30 days |
| Registry of the Court Service Charge | |
| Documentary Stamp Taxes | |
| Forms of Final Payment | cashier's check, certified check, money order, personal check, or business check. |
| In Case of Failure of Payment, What will happen to Bidding Deposit Amount | 20% down payment will be forfeited. |
| Clear Title of Property (No of days after filling the certificate of sale) |
TAX DEED
| CATEGORIES | SPECIFICATIONS |
|---|---|
| Application Fee | |
| Life of Tax Certificate(in years) | |
| Deposit amount required to bid | non-refundable deposit of $2,000 for each property purchased. |
| Location of Sale | Kent County Administrative Complex Building - Levy Court Chambers, 555 Bay Rd., Dover, DE 19901 |
| Tax Collector's Website | https://www.accesskent.com/Departments/Treasurer/ |
| Viewing Tax Deed Files | https://www.co.kent.de.us/sheriffs-office.aspx |
| Bidding Registration | In person before the start of the Sheriff Sale |
| Registry of the Court Service Charge/ Recording fee | |
| Documentary Stamp Taxes | |
| Total Amount Paid after winning the bid | $2,000 and remaining balance of the bid |
| Forms of Final Payment | cashier’s check, certified check, personal or business check, or money order, made payable to the Kent County Sheriff, |
| Time Frame to pay the whole amount | By 2:00:00 PM the day of the sale |