Delaware at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Delaware mortgage foreclosures are court cases. The lender files in the Superior Court of the county where the property is located for a writ of scire facias on the mortgage, and after judgment the sheriff sells the property at a public sale that must be confirmed before a deed is given. 10 Del. C. § 5061(a); 10 Del. C. § 5063; 10 Del. C. § 5065 Show the source textsue out of the Superior Court of the county wherein the mortgage premises are situated a writ of scire facias upon such mortgage directed to the sheriff of the county |
| Who holds foreclosure surplus | Any surplus from the sheriff's sale of mortgaged property, after the mortgage debt, interest and costs are paid, must be turned over to the person who owned the property at the time of the sale. When the sheriff cannot pay the money over, for example because the person entitled to it is unknown or out of state, it is paid into the Superior Court. The court holds unclaimed excess proceeds through its Prothonotary, publishes lists of them by county under its Project Rightful Owner program, and pays them out on a petition filed with the court. 10 Del. C. § 5067; 10 Del. C. § 4986; Delaware Superior Court, Project Rightful Owner (official court page) Show the source textAny surplus of the proceeds of sale of mortgaged premises, after satisfying the principal debt in the mortgage, with interest and costs, shall be rendered to the owner of the premises at the time of sale. |
| Claim window for foreclosure surplus | Delaware's foreclosure statute does not set a deadline to claim the surplus, and the officer who made the sale is not discharged on the court record until the surplus is paid over. Unclaimed excess proceeds stay with the Superior Court: the New Castle County list on the court's site today included court-held amounts from sales as far back as 2006, and the court says a claimant who proves entitlement also receives interest from the time the money was transferred to the Prothonotary. 10 Del. C. § 5067; Delaware Superior Court, Project Rightful Owner (official court page, https://courts.delaware.gov/superior/rightfulowner/) Show the source textUntil the surplus is so rendered, the officer making the sale shall not be discharged upon the record of the court to which the sale is returnable. |
| Tax sale excess proceeds | Delaware counties collect delinquent property taxes by selling the property itself, not a tax lien. Under the monition method the sheriff sells the property on a Superior Court writ, and the owner can redeem within 60 days from the day the court approves the sale by paying the purchase price plus 15 percent and costs. Kent and Sussex Counties can also use a tax collector's sale, where the owner has one year from the sale to redeem by paying the purchase money plus 20 percent interest and costs; in that kind of sale the amount left after the tax and costs must be paid at once to the owner, or deposited in a bank in the county to the owner's credit if the owner is unknown, cannot be found or refuses it. 9 Del. C. §§ 8722, 8725, 8729 (monition method); 9 Del. C. §§ 8771, 8776, 8779 (Kent and Sussex Counties) Show the source textAfter satisfying the tax due and the costs and expenses of sale from the proceeds of sale under this subchapter, the amount remaining shall be paid at once to the owner of the land |
| Redemption after the sale | Delaware's mortgage foreclosure statute does not give the former owner a redemption period after the sheriff's sale. Once the sale is confirmed and the property is conveyed, the buyer holds it discharged from the equity of redemption. Tax sales are different: the owner can redeem within 60 days after the court approves a monition sale, or within one year after a Kent or Sussex County tax collector's sale. 10 Del. C. § 5066; 10 Del. C. § 5065; 9 Del. C. § 8729; 9 Del. C. § 8776 Show the source textshall hold the same, with their appurtenances, for such estate, or estates, as they were sold, or delivered for, discharged from all equity or redemption, and all other incumbrances made and suffered by the mortgagor |
| Rules for recovery companies | For property held by the State Escheator (Delaware's unclaimed property office), an agreement to locate or recover the property is enforceable only if it is in a record that describes the property and the services, is signed by the owner with the signature notarized, states the value of the property before and after the fee, and discloses that the property is held by the Department of Finance. Such an agreement is void if it is entered into at any time from the date the property became distributable to the owner until 24 months after it was paid or delivered to the State, and total fees and costs may not exceed $1,000 or 10 percent of the value of the property recovered, whichever is less. We did not find a Delaware statute that sets a fee limit or waiting period for recovering sheriff's sale excess proceeds held by the Superior Court. 12 Del. C. § 1186; 12 Del. C. § 1187(a), (c)-(e); 12 Del. C. § 1188 Show the source textFor an agreement under subsection (a) of this section, total fees and costs may not exceed $1,000 or 10% of the value of the property recovered, whichever is less. |
How surplus funds arise in Delaware
When a home in Delaware is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Delaware
We confirm the sale figures in the public record, identify which office in Delaware is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Delaware that program is the Office of Unclaimed Property, Delaware Department of Finance.
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Delaware law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Delaware
Delaware regulates this kind of service. For property held by the State Escheator (Delaware's unclaimed property office), an agreement to locate or recover the property is enforceable only if it is in a record that describes the property and the services, is signed by the owner with the signature notarized, states the value of the property before and after the fee, and discloses that the property is held by the Department of Finance. Such an agreement is void if it is entered into at any time from the date the property became distributable to the owner until 24 months after it was paid or delivered to the State, and total fees and costs may not exceed $1,000 or 10 percent of the value of the property recovered, whichever is less. We did not find a Delaware statute that sets a fee limit or waiting period for recovering sheriff's sale excess proceeds held by the Superior Court. (12 Del. C. § 1186; 12 Del. C. § 1187(a), (c)-(e); 12 Del. C. § 1188)
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Delaware
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Delaware, from locating the funds to filing the claim.
Any surplus from the sheriff's sale of mortgaged property, after the mortgage debt, interest and costs are paid, must be turned over to the person who owned the property at the time of the sale. When the sheriff cannot pay the money over, for example because the person entitled to it is unknown or out of state, it is paid into the Superior Court. The court holds unclaimed excess proceeds through its Prothonotary, publishes lists of them by county under its Project Rightful Owner program, and pays them out on a petition filed with the court.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.