Facing Foreclosure in New York?

You have more time and more options than you think. New York uses judicial foreclosure with a typical timeline of 900 days. This guide explains what's happening and what to do.

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Foreclosure Type

Judicial

Court action required

Typical Timeline

900 Days

From first notice to sale

Redemption Period

Pre-Sale Only

Cure before sale only

Deficiency Judgment

Limited

Restrictions apply

Right to Cure

Until Sale

Pay arrears to stop process

Mandatory Mediation

Required

Mandatory Settlement Conference Program

Where are you right now?

I'm behind on payments You've missed one or more mortgage payments but haven't received a foreclosure notice I got a foreclosure notice You received a Notice of Default or a letter about foreclosure proceedings My sale date is soon Your home is scheduled to be sold at auction

New York ranks 13th in the nation for financial distress, with a State Distress Index score of 56.4 (Elevated). The state's bankruptcy filing rate is 119 per 100,000 residents. Credit card delinquency stands at 12.91%. If you're struggling, you're not alone.

Source: New York Financial Distress Profile — American Default Research, updated 2026-04-16

Most Distressed Counties

County	Score	Zone
Bronx County	79.7	Serious
Montgomery County	64.6	Elevated
Chemung County	58.9	Elevated
Kings County	58.6	Elevated
Sullivan County	56.3	Elevated

1 county in Serious or Crisis zones, 22 in Elevated.

See all 62 New York counties →

New York Foreclosure Timeline

New York's judicial process gives you more time than most states. Federal law protects you for the first 120 days.

Day 1–36

Missed payment. Your servicer must attempt to contact you by Day 36 to discuss options. Federal law (Regulation X).

Day 37–45

Written notice required. Your servicer must send written notice of loss mitigation options by Day 45. You can still apply for help.

Day 45–120

Protected period. Federal law prohibits your lender from starting foreclosure until Day 120. This is your window to apply for a loan modification or forbearance.

Day 120+

Foreclosure can begin. If you've received court papers, you're here. In New York, the lender must file a lawsuit and serve you with a complaint. You have the right to respond and contest the action. You still have options — see what you can do.

Day 150–900

Foreclosure sale. The property is sold at a court-ordered sale. The lender often buys it back.

After sale

No post-sale redemption. New York does not offer a post-sale redemption period. Once the sale is confirmed, the property transfers to the new owner. This makes it even more important to act before the sale date.

For a personalized timeline based on your last payment date, use our Foreclosure Timeline Calculator.

Your Rights Under New York Law

Right to Cure Before judgment of foreclosure is entered. New York does not have a specific statutory cure period with a fixed deadline like some states. RPAPL §§ 1341, 1343; CPLR § 3408

Right to Reinstate Before judgment of foreclosure and sale is entered. Reinstatement is available throughout the pendency of the action. Mortgage instrument terms (Paragraph 19); RPAPL § 1341

Federal

Dual Tracking Prohibition Federal law (CFPB Regulation X) prohibits servicers from advancing foreclosure while reviewing a loss mitigation application. CPLR § 3408 (de facto protection via settlement conference process)

Loss Mitigation Review Under CPLR 3408, the mandatory settlement conference process effectively requires loss mitigation review for all residential foreclosure actions on 1-4 family owner-occupied properties. Both parties must negotiate in good faith, and the lender must bring documentation demonstrating what loss mitigation options were considered and offered. CPLR § 3408

Pre-Foreclosure Contact Written notice (RPAPL 1304 — 90-day pre-foreclosure notice). New York's pre-foreclosure contact requirement is written-notice-based rather than the phone/in-person contact model used by California (Civil Code 2923.5). RPAPL §§ 1304, 1306; 12 CFR 1024.39

New York-Specific Protections

RPAPL 1304 — 90-Day Pre-Foreclosure Notice New York's signature borrower protection. Requires lender to send a specific notice at least 90 days before commencing foreclosure, with a list of housing counseling agencies, in at least 14-point font, by both certified and first-class mail. RPAPL § 1304

CPLR 3408 — Mandatory Settlement Conference Court must schedule a settlement conference for all residential foreclosure actions on 1-4 family owner-occupied properties. Both parties must negotiate in good faith. CPLR § 3408

RPAPL 1371 — Deficiency Judgment Protections Lender must apply for deficiency within 90 days of deed delivery. Court determines fair market value — deficiency is calculated against the HIGHER of sale price or fair market value. RPAPL § 1371

Zombie Property and Foreclosure Prevention Act Requires mortgage lenders to maintain vacant and abandoned properties during the foreclosure process. Lenders must inspect properties within 90 days of default and continue maintenance if vacant. RPAPL §§ 1309-a, 1310

Mediation & Dispute Resolution in New York

Mandatory Settlement Conference Program (CPLR 3408)

Administered by New York Unified Court System — Supreme Court, Foreclosure Parts

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.

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. Includes condominiums and cooperatives.

Foreclosure paused during mediation Free for homeowners Free for homeowners

Program details

CPLR § 3408 (originally enacted 2008, made permanent and expanded)

Bankruptcy Court Programs

In addition to the statewide program, several New York bankruptcy courts offer their own loss mitigation programs.

Southern District of New York (SDNY) Loss Mitigation Program Chapter 13 and Chapter 7 (limited)

Eastern District of New York (EDNY) Loss Mitigation Program Chapter 13 and Chapter 7

Northern District of New York (NDNY) Loss Mitigation Program Chapter 13

Western District of New York (WDNY) Loss Mitigation Program Chapter 13

Your Options in New York

Every situation is different, but most New York homeowners have more options than they realize. Here are the paths available to you, from keeping your home to making a clean exit.

Can I keep my home?

Yes, if you act early enough. A loan modification permanently changes your mortgage terms to make payments affordable. Your servicer is required to evaluate you for one if you submit a complete application more than 37 days before a scheduled sale.

Forbearance gives you a temporary payment pause. It doesn't erase what you owe, but it buys time if your hardship is short-term. In New York, new York does not have a state-mandated forbearance program beyond federal requirements. Federal CFPB Regulation X loss mitigation evaluation requirements apply. Reinstatement means paying everything you owe (missed payments plus fees) to bring the loan current.

Filing for Chapter 13 bankruptcy triggers an automatic stay that halts foreclosure immediately. You can catch up on missed payments over 3-5 years while keeping your home. The bankruptcy filing rate in New York is 119 per 100,000 residents.

New York also requires mediation through the Mandatory Settlement Conference Program (CPLR 3408) before your lender can proceed with foreclosure.

What if I can't keep my home?

Selling before foreclosure gives you control over the process and protects your credit score. A short sale lets you sell for less than you owe with lender approval. A deed in lieu of foreclosure transfers the property directly to the lender.

If you sell through a short sale 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.

A deed in lieu of foreclosure in New York transfers the property directly to the lender. Permitted unless waived by the lender in the deed-in-lieu agreement.

New York limits deficiency judgments — your lender's ability to pursue you for the balance is restricted by state law.

A distressed property specialist can help

An agent who works with distressed sellers in New York can negotiate with your lender, manage the short sale process, and help you walk away with your credit intact. The earlier you start, the more leverage you have.

Talk to one for free

My sale date is within 30 days

You still have options, but you need to move fast.

File for bankruptcy. A Chapter 13 filing triggers an automatic stay that stops the sale immediately. Talk to a bankruptcy attorney today.

Submit a loss mitigation application. If you haven't already, a complete application received more than 37 days before the sale forces your servicer to review it before proceeding.

Call a HUD counselor now. They can contact your servicer on your behalf and may be able to delay the sale. Call 1-800-569-4287.

Request mediation. New York's Mandatory Settlement Conference Program (CPLR 3408) can give you additional time. Learn more.

Financial Assistance in New York

New York State Homeowner Assistance Fund

Check Availability

Administered by New York State Homes and Community Renewal (HCR)

Phone 1-855-466-3456

Apply Visit program website

Other New York Programs

Homeowner Protection Program (HOPP)

Available to all New York homeowners facing foreclosure or financial hardship. Provides free housing counseling and legal assistance through a network of HUD-approved agencies and legal services providers across the state.

Visit website 1-855-466-3456

After the Sale in New York

Eviction Notice

10 Days

Court order required for removal

Surplus Funds

You can claim

No strict statutory deadline for claiming surplus — the court holds the funds and distributes upon petition.

Cash for Keys

Commonly offered

No NY-specific statute governing cash for keys.

10 days written notice to quit before commencing a holdover proceeding. For former owner-occupants after foreclosure, the notice period is typically 10 days under RPAPL 713(5). The federal Protecting Tenants at Foreclosure Act (PTFA) requires at least 90 days' notice for bona fide tenants in any state.

Protect yourself from scams

People in financial distress are prime targets for fraud. Know these rules:

⚠

Never pay an upfront fee for help. Advance fees for mortgage or debt assistance are illegal in most states. If anyone asks for money before doing anything, walk away.

⚠

HUD-approved counseling is always free. Call 1-800-569-4287 or visit the CFPB counselor finder. If someone charges for what HUD counselors do for free, it's a scam.

⚠

Never sign over your deed without an attorney. "Equity stripping" and "sale-leaseback" scams trick homeowners into transferring their title. You could lose your home permanently.

⚠

Your servicer must evaluate you for loss mitigation. Under federal rules (Regulation X), servicers cannot start foreclosure until you're 120+ days delinquent, and must review your application before proceeding. If a company claims only they can "save" your home, verify through your actual servicer.

Report fraud: CFPB · FTC · your state attorney general's office.

How It Works

Tell us your situation

Answer a few questions about where you are in the process. Takes 60 seconds.

We review your options

A local professional reviews your situation based on New York law and your servicer's track record.

You get a plan

You receive a personalized action plan with next steps. No upfront fees. No obligation.

Foreclosure Timeline Calculator

See exactly when each step of New York's foreclosure process happens based on your last payment date.

Hardship Letter Generator

Write a loss mitigation request to your mortgage servicer. Pre-formatted with your situation details.

Get a Free, Confidential Review of Your Options in New York

A HUD counselor, attorney, or distressed property specialist in New York can review your specific situation. Many at no cost.

We connect you with HUD-approved counselors, legal aid, and distressed property specialists. We do not sell your information.

Free Resources in New York

HUD-Approved Counselors

90 certified agencies in New York provide free foreclosure prevention counseling. They can negotiate with your servicer on your behalf.

Find a counselor near you

Legal Aid

Legal Services NYC provides free legal help to low-income residents facing foreclosure, eviction, and debt collection.

Find legal aid

New York State Bar Association Lawyer Referral Service

The New York State Bar Association Lawyer Referral Service can connect you with a foreclosure defense attorney. Initial consultations are often free or low-cost.

Find an attorney

New York Foreclosure Law

Detailed guide to New York's foreclosure statutes, homeowner protections, and redemption rights. Every claim cited to its source statute.

Read New York foreclosure law

File a Complaint

If your mortgage servicer violates your rights, file a complaint with the New York State Department of Financial Services or the New York Attorney General. You can also file with the Consumer Financial Protection Bureau.

State financial regulator Attorney General CFPB complaint portal

New York State Homes and Community Renewal

Your state housing finance agency administers homeowner assistance programs, foreclosure prevention services, and affordable housing resources.

Visit HCR

Frequently Asked Questions

How long does foreclosure take in New York?

New York uses judicial foreclosure. The process typically takes 900 days from the first notice to the sale date. Federal law (Regulation X) prohibits lenders from starting foreclosure until Day 120 of delinquency.

Can I stop foreclosure once it starts in New York?

Yes. You have several options: (1) Reinstatement — pay all missed payments plus fees to bring your loan current. (2) Loan modification — your servicer must review a complete application received more than 37 days before a scheduled sale. (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.

Does New York require mediation before foreclosure?

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.

Does New York allow deficiency judgments?

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.

Is foreclosure counseling free in New York?

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.

What is the homestead exemption in New York?

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.

What if I have an FHA, VA, or USDA loan in New York?

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.

What happens to tenants if my New York home is foreclosed?

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.

Can I claim surplus funds after a foreclosure sale in New York?

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.

Is the Homeowner Assistance Fund still available in New York?

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.

Can I do a short sale to avoid foreclosure in New York?

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.

Last updated: 2026-04-16. Data sources: Federal Reserve Bank of New York, CFPB, U.S. Courts, Census Bureau, BLS, New York Code.

New York Foreclosure Facts