Facing Foreclosure in New York?

New York uses judicial foreclosure. In New York, foreclosures that finished in the second quarter of 2026 took an average of 2,007 days from the start of the foreclosure process to completion, according to ATTOM. The sale waits on a judge, and no law sets how fast a court case goes. 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. Some state notices that are only mailed to you can come during that wait. New York law sets these steps, each with its own minimum: 90-day notice: at least 90 days before the case is filed (RPAPL § 1304). Your answer: due 20 days after you're served in person in New York, or 30 days after other kinds of service (CPLR § 320(a)).

Often there are still ways to try, though none is guaranteed: (1) Reinstatement — paying what you're behind, plus fees, to bring the loan current, where state law or your mortgage allows it (New York's rule is under "When is it too late?" above). (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 — a temporary pause on payments, if your servicer agrees. (4) Bankruptcy — filing generally creates an automatic stay that can stop a foreclosure sale while it lasts, though the stay has exceptions and can last only a short time in some cases. (5) Short sale — selling the home for less than you owe, if your lender approves.

Yes. New York has the Mandatory Settlement Conference Program (CPLR 3408). Who can use it and how to start depends on the program's rules (program details). 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: whether the lender can collect the rest depends on the loan, the kind of sale and the rules below. Deficiency judgments ARE permitted in New York after judicial foreclosure, but with significant protections for the borrower under RPAPL 1371. A deficiency judgment can be entered only against a person liable for the debt who was made a defendant and appeared or was personally served with the summons. 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 amount owed under the judgment with interest, plus any prior liens with interest and the costs of the action (including the referee's fee), minus the HIGHER of the sale price or the fair market value — this prevents lenders from profiting from lowball sales. The 90-day deadline is strictly enforced; failure to apply within 90 days permanently bars the deficiency claim. The court has discretion to deny a deficiency judgment entirely.

Yes. HUD-approved housing counseling agencies give foreclosure-prevention counseling for free, and a counselor can help you talk to your servicer. HUD lists 90 approved counseling agencies in New York; its referral line is 1-800-569-4287.

As New York law sets it: $102,400 to $204,825 depending on county (CPLR 5206(a) amounts as adjusted by the Department of Financial Services, effective April 1, 2024), for property owned and occupied as a principal residence. The $204,825 amount applies in Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam counties; $170,700 in Dutchess, Albany, Columbia, Orange, Saratoga and Ulster counties; and $102,400 in all other counties. The next adjustment is scheduled for April 1, 2027. Whatever the amount, the exemption does not protect your home from mortgage foreclosure. It protects equity from other creditors.

Government-backed loans have their own rules on top of New York law. FHA requires a meeting or reasonable efforts to arrange one in covered defaults. Current rules allow approved remote methods; exceptions and timing requirements apply. VA and USDA set their own help options for the loans they back; the forbearance guide and loan modification guide explain each program's options, with the rule behind each one.

Federal PTFA protections apply (90-day notice for bona fide tenants; Section 8 tenants retain lease rights). New York's Housing Stability and Tenant Protection Act of 2019 (HSTPA) significantly strengthened tenant protections statewide. Rent-stabilized and rent-controlled tenants keep the same rights after a foreclosure sale, except that a new owner may evict from one unit to live there as a primary residence, with at least 90 days' notice. Tenants in units that are not rent-regulated may stay until the end of their lease term or for 90 days after receiving the new owner's notice, whichever is longer. 90 days — after the foreclosure sale, tenants in units that are not rent-controlled or rent-stabilized may stay until the end of their lease or for 90 days after receiving the new owner's notice, whichever is longer. The foreclosing party must notify tenants of the foreclosure action when it starts (RPAPL 1303). Rent-stabilized and rent-controlled tenants generally keep their rights under the rent regulations after a foreclosure. The foreclosing party may name tenants as defendants in the foreclosure action; a tenant named this way has no legal obligation to appear in court to defend it. The RPAPL 1303 notice must be given to tenants as well as borrowers: in buildings with fewer than five units it goes to each tenant by certified and first-class mail, and in buildings with five or more units it may instead be posted at each entrance and exit. After sale, tenants may negotiate 'cash for keys' with the new owner.

Possibly. If a foreclosure sale brings in more than is owed, the extra is called surplus. The costs of the sale, the debt being foreclosed and other liens on the home, such as a second mortgage, are generally paid first, and in some states a court decides who gets what is left. In New York: A claimant files a written notice of claim with the clerk where the report of sale is filed, stating the nature and extent of the claim. On the motion to confirm the sale, or within three months after it, any party or claimant can ask the court to decide, by reference or otherwise, the amount due to each lienholder and the priority of the liens and to order the surplus distributed. The former owner and other claimants get notice by mail, or as the court directs, of any hearing on the surplus (RPAPL 1361). RPAPL 1361 lets anyone claiming the surplus file a written notice of claim with the clerk at any time before the report of sale is confirmed. The court, county clerk or trustee who handled the sale can tell you whether any surplus is being held.

Generally, no. HAF programs, including the New York State Homeowner Assistance Fund, can't commit new money after September 30, 2026 (Treasury). If the program approved you before then, ask it about payments still being processed.

Possibly. A short sale lets you sell your home for less than you owe, if your lender approves it. Permitted unless the lender waives the deficiency. New York's Department of Financial Services says that although the lender will not usually pursue the homeowner for a deficiency judgment after a short sale, the lender cannot be prevented from doing so.