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Foreclosure in New York

New York foreclosures run through the courts, and they start with a notice at least 90 days ahead. Here's each step, from the state's own explanations.

Type: Judicial

Last checked October 26, 2026. Sources are listed at the bottom of this page.

Type
Judicial. The lender has to sue you in court to enforce the mortgage.
FHA time frame
HUD's time frame for FHA loans: 21 months from the first court filing to clear title and possession, or 27 months in New York City.
Settlement conference
Yes. Both sides must negotiate in good faith at a mandatory conference.
After the sale
No right to buy the home back.

How a New York foreclosure works, step by step

  1. Before a case can be filed, you have the right to a written notice at least 90 days ahead saying you're in default and at risk of foreclosure.
  2. The case starts when the lender files a notice called a lis pendens and has the court papers, a summons and complaint, delivered to you. The lender must also give you a notice called "Help for Homeowners in Foreclosure" that explains the process. It tells you that you can stay in your home until a foreclosure sale, and that you must keep up the property and pay the taxes until then.
  3. You must file a written Answer within 20 days if the papers were handed to you in person, or within 30 days if you got them another way.
  4. After you're served and the lender files proof of it, the court must schedule a settlement conference within 60 days.
  5. The lender asks the judge to appoint a referee, who adds up everything owed: principal, interest, late charges, and foreclosure fees and costs.
  6. If the court rules against you, a sale is scheduled, usually at least 4 months after the ruling. A notice of the sale runs in a newspaper once a week for at least 4 weeks before it.
  7. The sale is a public auction, usually at the county courthouse, and anyone, including the lender, can bid. Once the winning bidder pays and the sale is complete, the winning bidder owns the home.
  8. After a judgment of foreclosure and sale, the new owner can try to evict you.

The settlement conference

New York's settlement conference rule requires both sides in a home foreclosure case to negotiate in good faith at a mandatory conference. Borrowers with a home loan on a 1 to 4 unit home or a condo unit they live in are entitled to one.

  • If the lender doesn't negotiate in good faith, the interest, costs and fees on the loan stop adding up.
  • If you didn't file an Answer earlier, you get an extra 30 days to file one at the conference.

Bring your numbers. If you'd like help getting ready, a free housing counselor or legal services group can sit with you before the conference.

How long it takes

Foreclosure generally can't legally start until you're at least 120 days behind. Once it starts, how long you have until the sale depends on your state.

For FHA loans, HUD's time frame runs from the first legal action until the lender has clear title to the home and possession of it. HUD gives New York City 27 months and the rest of the state 21 months, and the first legal action is a court complaint.

The state's Department of Financial Services says foreclosure in New York takes about 445 days, or 15 months, from the first missed payment to the sale.

These are official markers, not a forecast. Your case can move faster or slower, so don't count on extra time.

Paying off, the sale and what's left after

Up until the sale, you can end the case by paying off the loan in full or by reaching a settlement with the lender. Once the sale is complete, you have no right to buy the home back.

If the home sells for more than you owe, you can ask the court for the extra money, called the surplus, but there are deadlines. If it sells for less than you owe, the lender can ask the court for a deficiency judgment against you for the difference.

Selling to an investor: the Home Equity Theft Prevention Act

This law generally covers selling a home in foreclosure to a buyer who wants it as an investment. If your home is in default, it covers the sale only when the contract includes a buyback agreement. If your home is in foreclosure, it doesn't apply when the buyer will use the home as their main home and actually lives there full time after the sale.

  • You can cancel the contract until midnight of the fifth business day after you sign it.
  • If a covered buyer doesn't follow the law, you may be able to cancel even after that, and the sale may be declared void.
  • It's illegal for the buyer to claim they're helping you "save" your home, or to act as your advisor or consultant.
  • In a buyback deal, if you can't or don't buy the home back, the buyer must pay you, but the law only requires at least 82% of the home's fair market value.

Separately, anyone who charges to help "save" your home must give you a contract listing their services and fees, and can't take money until every promised service is done.

I'm an investor, so this law is written with people like me in mind. I'm not your advisor. If I make you an offer in New York, take the five days, read every page, and have a housing counselor or a lawyer look at it with you.

Free help in New York

Sources

Last checked October 26, 2026. Every fact on this page comes from one of these official sources.

  1. NY Homes and Community Renewal: Received a Summons and Complaint? fact sheet (PDF) (hcr.ny.gov)
  2. HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook (PDF) (hud.gov)
  3. NY DFS: Settlement Conferences (dfs.ny.gov)
  4. NY DFS: Foreclosure Assistance: What May Happen When You Fall Behind (dfs.ny.gov)
  5. NY DFS: Help for Homeowners: Foreclosure Bill of Rights (dfs.ny.gov)
  6. NY DFS: Help for Homeowners in Foreclosure (RPAPL 1303 notice text, PDF) (dfs.ny.gov)
  7. NY Homes and Community Renewal: The Foreclosure Process in New York State (PDF) (hcr.ny.gov)
  8. NY Homes and Community Renewal: Mandatory Settlement Conference fact sheet (PDF) (hcr.ny.gov)
  9. CFPB: How long will it take before I’ll face foreclosure if I can’t make my mortgage payments? What is the foreclosure timeline? (consumerfinance.gov)
  10. NY DFS: Home Equity Theft (dfs.ny.gov)
  11. NY Attorney General: Homeowners (ag.ny.gov)

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