Question 1

Is New York a judicial or non-judicial foreclosure state?

Accepted Answer

Home foreclosures in New York go through the courts. The New York Department of Financial Services describes a foreclosure as a lawsuit that starts when the lender files and serves a summons and complaint, and a foreclosure sale is scheduled only after the court rules against the borrower. Residential foreclosure actions are governed by Article 13 of the Real Property Actions and Proceedings Law (RPAPL).

Question 2

What notice is required before a foreclosure sale in New York?

Accepted Answer

For a home loan on a 1-4 family home or condo the borrower lives in, the lender or servicer must mail a pre-foreclosure notice at least 90 days before starting a court case. It must be in at least 14-point type, be headed "YOU MAY BE AT RISK OF FORECLOSURE," list free housing counseling resources, and say the borrower may stay in the home until a court orders otherwise; it is sent by registered or certified mail and by first-class mail. When the case is filed, an owner-occupied 1-4 family homeowner must get a "Help for Homeowners in Foreclosure" notice, on colored paper, delivered with the summons and complaint. Tenants must get a separate notice within 10 days after the summons and complaint are served. Before a court-ordered sale, a notice of the time and place of sale must be published in a local newspaper once a week for four weeks (or at least twice a week for three weeks), and in some areas also posted in three public places.

Question 3

How long does foreclosure take in New York?

Accepted Answer

The statutes set these minimums: the pre-foreclosure notice must be mailed at least 90 days before the lender files suit; in a case involving a home loan where the homeowner lives in the property, the lender files proof of service within 20 days of service and the court then holds a settlement conference within 60 days; and the sale may take place only after the published notice runs - on or after the 28th day (and by the 35th day) after the first publication when published weekly for four weeks, or on or after the 21st day (and by the 28th day) when published twice weekly for three weeks.

Question 4

Can you stop a foreclosure by catching up on payments in New York?

Accepted Answer

When part of the loan is overdue and part is not yet due, the homeowner can pay the overdue principal and interest, plus court costs and any sale expenses, into court. If the payment is made before the judgment directing a sale, the court dismisses the foreclosure complaint; if it is made after that judgment but before the sale, the court stays the proceedings. If the borrower defaults again later, the court may order the judgment enforced.

Question 5

Is there a right of redemption after foreclosure in New York?

Accepted Answer

There is no right to redeem the home after the foreclosure sale. The New York Department of Financial Services states that after the sale, "you have no right of redemption."

Question 6

Can the lender come after you for the rest of the loan after foreclosure in New York?

Accepted Answer

Yes, but limited. The lender must ask the court for a deficiency judgment together with its motion to confirm the sale, made within 90 days after the sale is completed, against a person liable on the debt who appeared in the case or was personally served. The court determines the fair market value of the home as of the auction date, and the deficiency is the debt minus the higher of that market value or the sale price.

Question 7

Does New York have a foreclosure mediation program?

Accepted Answer

Yes. In a residential foreclosure on a home loan where the homeowner lives in the property, the court must hold a mandatory settlement conference within 60 days after the lender files proof of service. The conference looks at ways to avoid losing the home, such as a loan modification, short sale or deed in lieu of foreclosure. Both sides must bring certain documents, appear in person or through a lawyer, and negotiate in good faith; if the lender does not, the court must at least stop interest, costs and fees from building up. A homeowner without a lawyer at the first conference is treated as asking to proceed as a poor person, and no party may charge the other for the cost of attending.

Question 8

What happens to tenants when a rental home is foreclosed in New York?

Accepted Answer

Tenants must be notified when the foreclosure case starts. After a foreclosure, tenants in units that are not rent-controlled or rent-stabilized may stay for the rest of their lease or 90 days after the new owner's notice, whichever is longer (with limits for leases signed after the case started), and the new owner must give tenants written notice of this right and of its name and address. A new owner who will live in one unit as a primary residence may limit that unit to 90 days. Rent-controlled and rent-stabilized tenants keep the same rights they had with the old landlord, and the Department of Financial Services says foreclosure alone is not good cause to evict a Section 8 tenant.

Question 9

Can an HOA foreclose on your home in New York?

Accepted Answer

Yes, for condominiums. A condo board of managers has a lien on each unit for unpaid common charges, which ranks ahead of other liens except tax liens, the first mortgage and certain government housing-agency mortgages. The lien takes effect when a notice of lien is filed with the recording officer and lasts until paid or six years from filing, whichever comes first. The board may foreclose it the same way as a mortgage, but must first send the owner a notice in 14-point type stating the amount due at least 90 days before starting the foreclosure. The board may also sue for the money without foreclosing.

Question 10

What must a home seller disclose in New York?

Accepted Answer

Yes. A seller of residential real property under a purchase contract must complete and sign a "Property Condition Disclosure Statement" and deliver it to the buyer or buyer's agent before the buyer signs a binding contract. If the seller later learns the statement has become materially inaccurate, a revised statement must be given as soon as practicable, until closing or occupancy. The form's definition excludes condominium units, cooperative apartments and certain other property, and some sales are exempt under Real Property Law § 463.

Question 11

How do you get your home back after a tax sale in New York?

Accepted Answer

Under the state's tax-foreclosure law, the owner can redeem by paying the delinquent tax liens, including all charges authorized by law, to the enforcing officer before the redemption period ends. The period generally ends two years after the lien date. A tax district may lengthen it for residential or farm property or shorten it to one year for residential property listed as vacant and abandoned, and a later date set in the published foreclosure notice controls.

Question 12

Where can homeowners get free foreclosure help in New York?

Accepted Answer

The New York Department of Financial Services runs a Help for Homeowners page. Its Homeowner Protection Program (HOPP) connects homeowners with free housing counselors and legal services: call (855) 466-3456 or visit homeownerhelpny.com. DFS also lists the HOPE NOW hotline, 888-995-HOPE (888-995-4673), a county list of non-profit housing counselors, and a complaint form; New York City residents can also call 311.

Judicial or non-judicial	Home foreclosures in New York go through the courts. The New York Department of Financial Services describes a foreclosure as a lawsuit that starts when the lender files and serves a summons and complaint, and a foreclosure sale is scheduled only after the court rules against the borrower. Residential foreclosure actions are governed by Article 13 of the Real Property Actions and Proceedings Law (RPAPL). Source: N.Y. Dept. of Financial Services, Help for Homeowners; RPAPL §§ 1303, 1304
Required notices	For a home loan on a 1-4 family home or condo the borrower lives in, the lender or servicer must mail a pre-foreclosure notice at least 90 days before starting a court case. It must be in at least 14-point type, be headed "YOU MAY BE AT RISK OF FORECLOSURE," list free housing counseling resources, and say the borrower may stay in the home until a court orders otherwise; it is sent by registered or certified mail and by first-class mail. When the case is filed, an owner-occupied 1-4 family homeowner must get a "Help for Homeowners in Foreclosure" notice, on colored paper, delivered with the summons and complaint. Tenants must get a separate notice within 10 days after the summons and complaint are served. Before a court-ordered sale, a notice of the time and place of sale must be published in a local newspaper once a week for four weeks (or at least twice a week for three weeks), and in some areas also posted in three public places. Notices at filing: https://www.nysenate.gov/legislation/laws/RPA/1303. Notice of sale: https://www.nysenate.gov/legislation/laws/RPA/231 Source: RPAPL §§ 1304, 1303, 231
Time frames set by law	The statutes set these minimums: the pre-foreclosure notice must be mailed at least 90 days before the lender files suit; in a case involving a home loan where the homeowner lives in the property, the lender files proof of service within 20 days of service and the court then holds a settlement conference within 60 days; and the sale may take place only after the published notice runs - on or after the 28th day (and by the 35th day) after the first publication when published weekly for four weeks, or on or after the 21st day (and by the 28th day) when published twice weekly for three weeks. The Department of Financial Services says the process from the first missed payment to sale currently takes about 445 days (15 months); that is an estimate, not a legal rule. Source: RPAPL §§ 1304, 231; CPLR 3408
Right to catch up (reinstate)	When part of the loan is overdue and part is not yet due, the homeowner can pay the overdue principal and interest, plus court costs and any sale expenses, into court. If the payment is made before the judgment directing a sale, the court dismisses the foreclosure complaint; if it is made after that judgment but before the sale, the court stays the proceedings. If the borrower defaults again later, the court may order the judgment enforced. Separately, the Department of Financial Services says the servicer's demand or breach letter gives 30 days to pay the past-due amount and late charge; that comes from the loan process, not this statute. Source: RPAPL § 1341
Foreclosure mediation	Yes. In a residential foreclosure on a home loan where the homeowner lives in the property, the court must hold a mandatory settlement conference within 60 days after the lender files proof of service. The conference looks at ways to avoid losing the home, such as a loan modification, short sale or deed in lieu of foreclosure. Both sides must bring certain documents, appear in person or through a lawyer, and negotiate in good faith; if the lender does not, the court must at least stop interest, costs and fees from building up. A homeowner without a lawyer at the first conference is treated as asking to proceed as a poor person, and no party may charge the other for the cost of attending. Source: CPLR 3408

Redemption after the sale	There is no right to redeem the home after the foreclosure sale. The New York Department of Financial Services states that after the sale, "you have no right of redemption." Source: N.Y. Dept. of Financial Services, If You Fall Behind on Your Mortgage Payments
Deficiency judgments	Yes, but limited. The lender must ask the court for a deficiency judgment together with its motion to confirm the sale, made within 90 days after the sale is completed, against a person liable on the debt who appeared in the case or was personally served. The court determines the fair market value of the home as of the auction date, and the deficiency is the debt minus the higher of that market value or the sale price. Source: RPAPL § 1371
Tenants in a foreclosed home	Tenants must be notified when the foreclosure case starts. After a foreclosure, tenants in units that are not rent-controlled or rent-stabilized may stay for the rest of their lease or 90 days after the new owner's notice, whichever is longer (with limits for leases signed after the case started), and the new owner must give tenants written notice of this right and of its name and address. A new owner who will live in one unit as a primary residence may limit that unit to 90 days. Rent-controlled and rent-stabilized tenants keep the same rights they had with the old landlord, and the Department of Financial Services says foreclosure alone is not good cause to evict a Section 8 tenant. DFS tenant page: https://www.dfs.ny.gov/consumers/help_for_homeowners/tenants_rights_foreclosure Source: RPAPL §§ 1305, 1303; N.Y. Dept. of Financial Services, Tenants' Rights in Foreclosed Properties

HOA liens and foreclosure	Yes, for condominiums. A condo board of managers has a lien on each unit for unpaid common charges, which ranks ahead of other liens except tax liens, the first mortgage and certain government housing-agency mortgages. The lien takes effect when a notice of lien is filed with the recording officer and lasts until paid or six years from filing, whichever comes first. The board may foreclose it the same way as a mortgage, but must first send the owner a notice in 14-point type stating the amount due at least 90 days before starting the foreclosure. The board may also sue for the money without foreclosing. Lien priority: https://www.nysenate.gov/legislation/laws/RPP/339-Z Source: N.Y. Real Prop. Law §§ 339-z, 339-aa
Property tax sales	Under the state's tax-foreclosure law, the owner can redeem by paying the delinquent tax liens, including all charges authorized by law, to the enforcing officer before the redemption period ends. The period generally ends two years after the lien date. A tax district may lengthen it for residential or farm property or shorten it to one year for residential property listed as vacant and abandoned, and a later date set in the published foreclosure notice controls. Source: N.Y. Real Prop. Tax Law § 1110
Seller disclosure	Yes. A seller of residential real property under a purchase contract must complete and sign a "Property Condition Disclosure Statement" and deliver it to the buyer or buyer's agent before the buyer signs a binding contract. If the seller later learns the statement has become materially inaccurate, a revised statement must be given as soon as practicable, until closing or occupancy. The form's definition excludes condominium units, cooperative apartments and certain other property, and some sales are exempt under Real Property Law § 463. Source: N.Y. Real Prop. Law § 462

New York Foreclosure Laws: Process, Timeline and Your Rights

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