Facing Foreclosure in New York?

New York uses judicial foreclosure. In New York, the bank can foreclose in roughly 900 days from the first notice to the sale date — though the actual timeline depends on how you respond and which protections apply. When 12 C.F.R. § 1024.41 applies to a principal-residence mortgage, the rule generally bars a servicer in an ordinary delinquency-based foreclosure from making the first notice or filing until the loan is more than 120 days delinquent. Limited exceptions apply to due-on-sale violations and joining a superior or subordinate lienholder's foreclosure.

Yes. You have several options: (1) Reinstatement — pay all missed payments plus fees to bring your loan current. (2) Loan modification — if 12 C.F.R. § 1024.41 applies to a mortgage secured by your principal residence and no § 1024.30 exemption applies, including exemptions for small servicers, reverse-mortgage transactions, and qualified lenders, a complete application received more than 37 days before a scheduled sale generally requires evaluation for available options and a written decision; the rule does not require a particular modification. (3) Forbearance — temporary payment pause. (4) Bankruptcy — triggers an automatic stay that halts the sale immediately. (5) Short sale — sell the property before the lender does.

Yes. New York offers the Mandatory Settlement Conference Program (CPLR 3408), which may be required as part of the court process. Mediation gives you a chance to negotiate directly with your lender under the supervision of a neutral third party. This can result in loan modifications, payment plans, or other alternatives to foreclosure.

New York limits deficiency judgments. Your lender's ability to pursue you for the remaining balance is restricted by state law. Requirements may include fair market value credits or time limitations. See our New York foreclosure law guide for specific details.

Yes. There are 90 HUD-approved counseling agencies in New York. Call 1-800-569-4287 for a free referral. HUD counselors can negotiate with your servicer on your behalf at no cost to you. Find one near you.

New York's homestead exemption is $150,000. Important: this exemption does not protect your home from mortgage foreclosure. It only protects equity from unsecured creditors like credit card companies. It will not stop or slow a foreclosure.

Government-backed loans have additional protections beyond New York state law. FHA loans require a face-to-face meeting attempt before foreclosure. VA loans require the servicer to explore all alternatives. USDA loans have their own loss mitigation process. These protections generally extend the timeline beyond the state minimums.

Federal law (the Protecting Tenants at Foreclosure Act) gives tenants with valid leases at least 90 days' notice before they must vacate after a foreclosure sale. 90 days — under RPAPL 1305, tenants in residential properties must be served with notice of the foreclosure action. If you rent out the property, notify your tenants as soon as possible and advise them to document their lease.

Yes. If your New York home sells at auction for more than the total owed (including fees and costs), you have the right to claim the difference. No strict statutory deadline for claiming surplus — the court holds the funds and distributes upon petition.. Contact the county clerk, court, or trustee who conducted the sale. These funds can be significant — don't assume nothing is left.

Check with your state housing agency for current availability. Contact a HUD-approved counselor at 1-800-569-4287 for help identifying programs you may qualify for.

Yes. A short sale lets you sell your home for less than you owe, with your lender's approval. In New York, permitted unless the lender explicitly waives the deficiency in the short sale approval letter. New York does not have a statute barring deficiency judgments after short sales. Contact a HUD-approved counselor to evaluate whether a short sale makes sense for your situation.