What legal document initiates a foreclosure process in Delaware?

The legal document that initiates a foreclosure process in Delaware is known as a notice of default. This document serves as a formal notification to the borrower that they have defaulted on their mortgage obligations due to missed payments or other breaches of the mortgage agreement. The notice is an essential step in the foreclosure process, as it alerts the homeowner that the lender intends to proceed with foreclosure unless the default is cured.

Issuing the notice of default is a requirement for initiating the legal proceedings that may lead to a foreclosure sale of the property. It typically provides the borrower with a defined period to make the overdue payments or resolve the default before further legal actions are taken.

In contrast, a mortgage agreement serves to establish the terms under which the loan was made, but does not trigger the foreclosure process. A deed in lieu of foreclosure is a resolution that occurs when the borrower voluntarily transfers ownership of the property to the lender to avoid foreclosure, occurring after the initiation process. A property appraisal report assesses the value of the property and does not initiate any foreclosure actions. Thus, the notice of default is pivotal in formally commencing the foreclosure proceedings.