Start here, today, at no cost

  • New York's Homeowner Protection Program (HOPP): free housing counseling and legal services, statewide hotline 855-466-3456
  • HUD-approved counseling agencies: find one at hud.gov or call 800-569-4287
  • Your servicer's loss mitigation department: ask specifically about forbearance, repayment plans, loan modification and partial claims
  • Do not ignore court papers. New York requires a settlement conference in owner-occupied residential foreclosures, and appearing matters

How the New York timeline generally runs

New York is a judicial foreclosure state, which means the lender must file a lawsuit and obtain a judgment before a sale can occur. Before filing, servicers are generally required to send a 90-day pre-foreclosure notice. After filing, owner-occupied residential cases are scheduled for a mandatory settlement conference intended to explore alternatives.

The practical consequence is that New York foreclosures typically take a long time, which is genuinely useful. It means there is usually room to negotiate, to apply for assistance, or to sell in an orderly way rather than a panicked one. It does not mean the deadlines are soft.

The realistic options

Reinstate or repay

Bring the loan current, possibly through a repayment plan spread over months. Best where the hardship was temporary.

Modify the loan

Change the terms so payments are affordable going forward. Requires a complete application and patience with the servicer.

Sell with equity

If the house is worth more than what is owed, selling converts equity to cash before a judgment can consume it.

Short sale or deed in lieu

Where there is no equity, these require servicer approval and can limit deficiency exposure. A counselor or attorney should be involved.