State Foreclosure Law
New York Foreclosure Laws
New York is a judicial foreclosure-only state and has one of the LONGEST foreclosure timelines in the nation — routinely 2-3+ years from filing to sale. Key distinguishing features include: (1) exclusively judicial foreclosure through Supreme Court under RPAPL Article 13; (2) RPAPL 1304 requires a 90-day pre-foreclosure notice SEPARATE FROM and IN ADDITION TO the federal 120-day delinquency requirement; (3) CPLR 3408 mandates settlement conferences for all residential foreclosure actions on 1-4 family owner-occupied properties — this is the primary driver of the extended timeline; (4) homestead exemption under CPLR 5206 varies by county ($150,000-$300,000+), substantially increased by 2020 amendments; (5) deficiency judgments ARE permitted but lender must apply within 90 days of sale and court determines fair market value (RPAPL 1371); (6) NO post-sale right of redemption; (7) RPAPL 1361 governs surplus funds distribution; (8) Zombie Property and Foreclosure Prevention Act (RPAPL 1309-a, 1310) imposes maintenance obligations on lenders for vacant foreclosure properties; (9) Housing Stability and Tenant Protection Act (2019) significantly strengthened tenant protections.
Research depth: Pilot · Last reviewed March 5, 2026 · Awaiting attorney validation
23 cited
8 needs check
18 gaps
Not legal advice. This page provides general information about New York foreclosure law based on cited statutes and rules. Every citation links to the official source for verification. Laws change — always confirm current statute text and consult a New York-licensed attorney for advice specific to your situation.
Governing Statutes
| Citation | Title | Covers |
|---|---|---|
| RPAPL Article 13 (§§ 1301-1391) | Action to Foreclose a Mortgage | Judicial foreclosure process, lis pendens, judgment of foreclosure and sale, surplus funds, deficiency judgments, 90-day pre-foreclosure notice, help for homeowners notice, DFS filing requirement, zombie property obligations |
| CPLR § 3408 | Mandatory Settlement Conference in Residential Foreclosure Actions | Mandatory settlement conferences for 1-4 family owner-occupied residential properties, good faith negotiation requirement, judicial supervision of loss mitigation review |
| CPLR § 5206 | Homestead Exemption | Homestead exemption amounts by county, automatic application, exemption from forced sale for judgments (but NOT for mortgages) |
| CPLR §§ 6501-6515 | Notice of Pendency (Lis Pendens) | Filing and effect of lis pendens, cancellation, duration, constructive notice to purchasers and lienholders |
| CPLR § 213(4) | Statute of Limitations — Mortgage Foreclosure | Six-year statute of limitations for actions to foreclose a mortgage |
| RPAPL § 1304 | Required Prior Notices (90-Day Pre-Foreclosure Notice) | 90-day pre-foreclosure notice to homeowner, content requirements, housing counseling agency list, delivery methods |
| RPAPL § 1303 | Home Loan Protection — Foreclosure Notice on Residential Properties | Help for Homeowners in Foreclosure notice, required attachment to summons and complaint, content in English and Spanish |
| General Business Law Article 36-B (§§ 771-788) | Distressed Property Consulting | Foreclosure rescue fraud protections, distressed property consultant registration, prohibited practices, rescission rights |
| RPAPL §§ 1309-a, 1310 | Zombie Property and Foreclosure Prevention Act | Vacant and abandoned property maintenance obligations for mortgage lenders, DFS registry, expedited foreclosure for vacant properties |
Judicial Foreclosure Process
Awaiting verification1
RPAPL 1304 — 90-Day Pre-Foreclosure Notice
At least 90 days before commencement of foreclosure action
At least 90 days before commencing a foreclosure action, the lender or servicer must send a notice to the borrower that meets specific statutory requirements. The notice must: (1) be sent by registered or certified mail AND by first-class mail to the borrower's last known address; (2) include a list of at least five HUD-approved housing counseling agencies serving the county where the property is located, with phone numbers, addresses, and websites; (3) contain specific statutory language informing the borrower that their home loan is in default, they may lose their home, and they have the right to seek assistance; (4) be printed in at least 14-point font. This requirement is IN ADDITION TO the federal 120-day delinquency requirement under CFPB Regulation X. In practice, the 90-day notice is typically sent during the federal 120-day waiting period so the timelines overlap. Failure to properly send the 1304 notice is one of the most commonly litigated defenses in NY foreclosure. Courts interpret the notice requirements strictly — defects in content, delivery method, or housing counselor list can be fatal to the action.
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Defense opportunity: Strict compliance required. Common defenses include: notice not sent to correct address, missing or incorrect housing counselor list, inadequate font size, wrong delivery method (both certified AND first-class mail required), content not matching statutory language. Borrower can move to dismiss the foreclosure action if the 1304 notice is defective.
2
RPAPL 1306 — Filing with Department of Financial Services
Within 3 business days of mailing the RPAPL 1304 notice
Within 3 business days of mailing the RPAPL 1304 notice, the lender must electronically file information about the borrower and the mortgage with the New York State Department of Financial Services (DFS). The filing includes the borrower's name and address, loan information, servicer contact information, and type of loan. This creates a statewide database that DFS uses to track foreclosure activity and connect borrowers with assistance. The lender must also file an updated notice with DFS when the foreclosure action is commenced.
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Defense opportunity: Failure to file with DFS as required may be raised as a defense, though courts vary on whether this is a strict compliance requirement that mandates dismissal.
3
Filing of Notice of Pendency (Lis Pendens)
At or before the time of filing the complaint
Before or simultaneously with filing the foreclosure complaint, the plaintiff must file a notice of pendency (lis pendens) with the county clerk in the county where the property is located. Under CPLR 6501, the lis pendens provides constructive notice to all subsequent purchasers and encumbrancers that the property is the subject of pending litigation. The lis pendens is effective from the date of filing and is valid for 3 years (with extensions available under CPLR 6513). It must be indexed by the county clerk against the name of each defendant.
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Defense opportunity: A lis pendens that does not comply with CPLR 6511 requirements (property description, names, court, relief sought) may be subject to cancellation. A defendant may move to cancel the lis pendens under CPLR 6514 if the plaintiff has not commenced the action within the required time, or if the action has been discontinued or dismissed.
4
Filing of Summons and Complaint
After the 90-day RPAPL 1304 notice period has expired and federal 120-day delinquency requirement is met; within the 6-year statute of limitations
The lender files a summons and verified complaint for foreclosure in the Supreme Court of the county where the property is located. The complaint must: (1) identify all parties, including the borrower, any co-borrowers, and all parties with interests in the property (junior lienholders, tenants, HOA/condo associations); (2) describe the mortgage and note, including recording information; (3) allege the default and the amount due; (4) include a legal description of the property; (5) attach the RPAPL 1303 'Help for Homeowners in Foreclosure' notice — a bright-colored notice in English and Spanish informing the borrower of their rights and available resources. The complaint must also include an affirmation of compliance with RPAPL 1304 (90-day notice) requirements. Under RPAPL 1302, the plaintiff must certify that it has reviewed the facts of the case, confirmed the amount owed, and confirmed it is the creditor entitled to enforce the note.
§
Defense opportunity: Standing is frequently litigated — plaintiff must prove it is the holder of the note at the time of filing. RPAPL 1303 notice must be properly attached. Common defenses: lack of standing, statute of limitations, failure to comply with RPAPL 1304, conditions precedent not satisfied, payment defense.
5
Service of Process and Answer Period
20 days after personal service within NY; 30 days after other methods of service
The borrower and all named defendants must be served with the summons and complaint. Service must comply with CPLR Article 3 (personal service, substituted service, service by affix-and-mail, or service by publication if other methods fail). The borrower has 20 days to answer if personally served within New York, or 30 days if served by any other method (CPLR 320(a)). If the borrower fails to answer, the plaintiff may move for a default judgment. However, even in default cases, the court must still schedule a mandatory settlement conference under CPLR 3408 for eligible properties.
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Defense opportunity: Improper service is a jurisdictional defect. Motion to dismiss for lack of personal jurisdiction (CPLR 3211(a)(8)). Borrower should file an answer raising affirmative defenses even if also attending settlement conferences.
6
Mandatory Settlement Conference (CPLR 3408)
Court schedules initial conference within 60 days of filing (varies by county); conferences can continue for 6-18+ months
For all residential foreclosure actions involving a home loan on a 1-4 family dwelling that is or was the borrower's principal residence, the court MUST schedule a mandatory settlement conference. The purpose is to determine whether the parties can reach a mutually agreeable resolution to avoid foreclosure. Both parties must negotiate in good faith. The plaintiff must appear through a representative with authority to dispose of the case, bring all documents related to the loan including the original note (or explanation of its absence), payment history, and loss mitigation options evaluated. Multiple conference sessions are common and the process can extend for 6 months to over a year. The court may appoint a referee to supervise the conferences. If the lender fails to negotiate in good faith, the court can impose sanctions including tolling of interest, reducing the principal balance, or dismissing the action. The settlement conference process is the single biggest driver of New York's extended foreclosure timeline.
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Defense opportunity: This is the borrower's primary opportunity to obtain a loan modification, forbearance, repayment plan, or other resolution. Borrower should bring complete financial documentation. If the lender fails to negotiate in good faith or sends a representative without authority, the borrower can request sanctions. Many cases are resolved at or through the settlement conference process.
7
Motion Practice, Discovery, and Summary Judgment
Varies widely — typically 3-12+ months after release from settlement conference; contested cases can take years
If the settlement conference does not result in a resolution and the case is released from the conference part, it proceeds on the regular litigation track. The plaintiff typically moves for summary judgment under CPLR 3212. The plaintiff must establish: (1) existence of the mortgage and note, (2) that the plaintiff is the holder or owner with standing, (3) the borrower's default, (4) the amount due, and (5) compliance with all conditions precedent including RPAPL 1304 and 1306. If the borrower raises genuine issues of material fact, the motion may be denied and the case proceeds to trial. Foreclosure is an equitable action — there is no right to a jury trial on the foreclosure itself.
Defense opportunity: Borrower can oppose summary judgment by raising factual disputes on standing, amount owed, compliance with pre-foreclosure notice requirements, statute of limitations, or unconscionability. Discovery may reveal servicer errors, improper fees, or chain-of-title defects.
8
Judgment of Foreclosure and Sale
Referee appointed at judgment; referee's report filed and confirmed; sale typically 60-120 days after judgment
If the court grants summary judgment or judgment after trial, it issues a judgment of foreclosure and sale under RPAPL 1321. The judgment appoints a referee to compute the amount due and to conduct the sale. The referee must compute the total indebtedness including principal, interest, taxes, insurance, and allowable costs, and file a report with the court. After the referee's report is confirmed, the court issues an order directing the sale. The sale must be conducted as a public auction by the referee, with at least 30 days' published notice in a newspaper designated by the court.
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Defense opportunity: Borrower can object to the referee's computation (e.g., challenging improper fees, miscalculated interest, or unverified amounts). The court must confirm the referee's report before the sale can proceed.
9
Referee Sale (Public Auction)
At least 30 days after publication of notice of sale; typically 60-90 days after judgment
The court-appointed referee conducts a public auction of the property at the time, date, and place specified in the published notice. The referee publishes notice of sale in a newspaper of general circulation in the county, as directed by the court, for at least 30 days before the sale (published once per week for at least 4 consecutive weeks). The property is sold to the highest bidder. The plaintiff/mortgagee may make a credit bid up to the amount of the judgment. The successful bidder must deposit 10% of the purchase price at the time of sale and pay the balance within 30 days. The referee executes and delivers a deed to the successful purchaser. The court must confirm the sale.
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Defense opportunity: Borrower may move to vacate the sale for fraud, irregularity, or inadequacy of price so gross as to shock the conscience. Junior lienholders and other interested parties may bid at the sale.
10
Surplus Funds Distribution (RPAPL 1361)
After confirmation of sale; claims must be filed by petition
If the sale proceeds exceed the amount due on the mortgage (including costs of sale, referee's fees, and attorney's fees), the surplus is paid into court. Junior lienholders and the former homeowner may file claims for the surplus funds. The court determines the priority of claims and distributes the surplus accordingly: (1) costs of sale, (2) the foreclosing mortgage debt, (3) junior lienholders in order of priority, (4) the former owner for any remaining balance. Claims must be filed by petition to the court. Unclaimed surplus funds are held by the court and eventually transferred to the Comptroller's unclaimed funds office.
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Defense opportunity: Former homeowner has a right to claim any surplus over and above all liens and costs. Should monitor the sale price and file a timely claim. There is no strict statutory deadline for filing a claim, but courts may set deadlines by order.
Homeowner Protections
Awaiting verificationHomestead Exemption
$150,000 to $300,000+ depending on county (CPLR 5206(a) as amended in 2020). New York's homestead exemption varies by county in a tiered structure. NYC boroughs (Kings, Queens, New York, Bronx, Richmond) have an exemption of $150,000. Suburban downstate counties (Westchester, Nassau, Suffolk, Rockland, Putnam, Dutchess, Orange) have higher amounts. Upstate and other counties have varying amounts. IMPORTANT: These amounts were substantially increased by Chapter 579 of the Laws of 2020 and should be verified against the current statutory text.
§
Automatic — no filing required. Does not protect against foreclosure by the mortgage holder (only judgment creditors).
Deficiency Judgment
Allowed with limitations
§
Deficiency judgments ARE permitted in New York after judicial foreclosure, but with significant protections for the borrower under RPAPL 1371. The lender must: (1) apply for the deficiency judgment within 90 days of the delivery of the referee's deed to the purchaser; (2) the court must determine the fair market value of the property at the time of the sale; (3) the deficiency is the difference between the judgment amount and the HIGHER of the sale price or the fair market value — this prevents lenders from profiting from lowball sales.
Right of Redemption
None — New York does NOT provide a statutory right of redemption after the foreclosure sale.
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Pre-sale reinstatement available. Any time before the sale is conducted.
Right to Cure
Before judgment of foreclosure is entered
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All past-due payments, late fees, reasonable attorney's fees, and costs of the action as allowed by the mortgage instrument and court order
Mandatory Settlement Conference Program (CPLR 3408)
Awaiting verificationNew York's mediation program applies to: All residential foreclosure actions involving a home loan on a 1-4 family dwelling that is or was the principal residence of the borrower. §
How It Works
Automatic — the court schedules the initial settlement conference upon or shortly after the filing of the foreclosure action. No referral is required. The court's foreclosure part handles scheduling.
Key Requirements
Eligibility
Automatic — the court must schedule a settlement conference for all eligible cases
Both answered and unanswered (default) cases are eligible. Borrower does not need to opt in or request the conference.
Cost
$0 — no fees charged to borrowers for settlement conferences (borrower), $0 — no separate fees for the program; regular court filing fees apply (lender)
Fee may be waived for borrowers who demonstrate financial hardship.
Administered By
New York Unified Court System — Supreme Court
Enforcement
Court injunction available
The court has broad equitable remedies including: tolling of interest and fees from the date of bad faith; reducing the principal balance owed; dismissal of the foreclosure action; striking the plaintiff's answer to counterclaims; awarding attorney's fees and costs to the borrower; other sanctions as the court deems just and proper.
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Free Legal Resources in New York
- Legal Services NYCLargest civil legal services provider in the country. Provides representation in Supreme Court foreclosure defense including CPLR 3408 settlement conferences.legalservicesnyc.org →
- Legal Aid SocietyProvides legal representation in housing matters including foreclosure defense. Handles both consumer and tenant-side foreclosure issues.legalaidnyc.org →
- Empire Justice CenterProvides foreclosure prevention counseling, legal representation, and policy advocacy. Active in Western NY including Buffalo and Rochester.empirejustice.org →
- Legal Aid Society of Northeastern New YorkCovers Albany, Saratoga, and surrounding counties. Provides foreclosure defense representation.lasnny.org →
- HUD-Approved Housing CounselorsFree, federally funded housing counseling agencies in New York. Can help with loan modification applications, mediation preparation, and understanding your options.Find a counselor in New York →
- New York State Homeowner Protection Program (HOPP) HotlineFree statewide hotline connecting homeowners with HUD-approved housing counselors and legal services providers. Operated by HCR.1-855-HOME-456 (1-855-466-3456) →
- New York State Department of Financial Services Consumer HotlineFor complaints about mortgage servicers, banks, and other financial institutions regulated by DFS.1-800-342-3736 →
- New York State Bar Association Lawyer Referral ServiceVaries by county bar; some county bars offer free 30-minute consultationsnysba.org/lawyerreferral →
- Volunteer Lawyers Project of Onondaga CountyProvides pro bono foreclosure defense attorneys in the Syracuse area.onbar.org →
- City Bar Justice CenterNew York City Bar Association's pro bono program. Provides foreclosure prevention legal assistance.citybarjusticecenter.org →
Find Help in New York
We maintain a verified directory of free and low-cost help providers in New York. All are government-approved or federally funded.
National Foreclosure Guides
These guides explain foreclosure at the federal level — your rights, your options, and what to do at each stage. They apply in every state, including New York.
Facing Foreclosure?
Overview of the process, your options, and where to get free help
How to Stop Foreclosure
Steps you can take today — forbearance, modification, legal aid, bankruptcy
Your Rights in Foreclosure
Federal protections under CFPB Regulation X and loss mitigation rules
How Foreclosure Works
Stage-by-stage walkthrough from missed payments to sale
Behind on Your Mortgage?
What to do if you've missed a payment or know you'll miss one soon
Bankruptcy & Foreclosure
How Chapter 7 and Chapter 13 can stop or delay foreclosure
New York Distress Data
The American Distress Index tracks household financial distress at the national level. Here are ADI indicators with particular relevance to New York homeowners:
Foreclosure Filings
National trend
New York is a judicial state — filings reflect court-ordered foreclosure actions.
The FHA Signal
FHA delinquency rate
FHA serious delinquency rate — the canary in the coal mine for borrowers with thin down payments.
The Pipeline
Foreclosure starts & completions
Monthly foreclosure starts and completions from CoreLogic — the volume flowing through the system.
First Missed
Early-stage transitions
Borrowers transitioning from current to 30-days late — the earliest warning signal before delinquency rises.
See the full picture: Foreclosure Statistics 2026 | Mortgage Delinquency Statistics 2026
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If you're facing foreclosure in New York, free help is available right now. Call the New York State Homeowner Protection Program (HOPP) Hotline at 1-855-HOME-456 (1-855-466-3456) or find a HUD-approved housing counselor near you at no cost.