Police say the dog, "Little Bit," was sold on the street in Wilmington on Tuesday night for $200.
The buyer was a woman who bought the dog for her daughter, but then called police on Wednesday morning after she became aware that it was the same dog she saw in news reports.
Police said Little Bit has been reunited with the Sanchez family and appears to be doing well. Little Bit was frightened and dehydrated when returned but appeared to be unharmed.
She was showered with love back at home.
"I'm just so happy. I thought we lost part of our family - she is part of our family - and she always will be and I love her so much," said Jenna Sanchez.
"I feel like I can eat, I feel like I can sleep and one thing good thing came out of this - we got her back. It's one of the best days of my life," said Michelle Sanchez.
The Sanchez family even said they will refund the money the woman paid to buy Little Bit in Wilmington.
There was no word yet on the suspect in this crime.
The burglary happened at a home unit block of Emerald Ridge Drive in New Castle County on Monday afternoon.
$37,000 in jewelry and a Dodge minivan were also nabbed from the home. There is no word yet on if the cash and the vehicle have been recovered.
The Sanchez family told Action News this week that they suspect a relative, hooked on drugs, may be responsible.
"I think she took her because, for a drug addict, $50, $100 for crack or whatever is just that," said Chris Sanchez.
Anyone with information is asked to call New Castle County Police at 302-395-8110.