How to Stop Foreclosure in New York

Last updated: June 2024. Reviewed by the Law Offices of Albert Goodwin, a New York real estate litigation firm with offices in Manhattan, Brooklyn, and Queens.

If you have fallen behind on your mortgage, the most important thing to understand is that New York is a judicial foreclosure state. That means your lender cannot simply schedule an auction and take your home. It must file a lawsuit in the New York Supreme Court, serve you, and obtain a judgment of foreclosure and sale from a judge before your property can be sold. This process is governed primarily by Article 13 of the Real Property Actions and Proceedings Law (RPAPL 1301–1391) and gives New York homeowners more procedural protections—and more time—than borrowers in “non-judicial” states.

This page explains, step by step, how the New York foreclosure timeline actually works, the notices your lender is legally required to send, the mandatory settlement conference under CPLR 3408, the defenses that can stop or delay a foreclosure, and your options at each stage. Because the outcome affects your home and finances, this is best done with an attorney who knows New York foreclosure law.

How Foreclosure Works in New York: The Judicial Timeline

Understanding where you are in the process tells you which tools are still available. A typical New York residential foreclosure moves through the following stages.

1. Default and the RPAPL 1304 90-Day Pre-Foreclosure Notice

Before a lender can start a foreclosure on an owner-occupied, one-to-four family residence or a condominium unit, RPAPL § 1304 requires it to send a 90-day pre-foreclosure notice to the borrower by both certified and first-class mail. This notice must be printed in 14-point type, contain specific statutory language (including a warning that the borrower is at risk of losing the home), and list at least five approved not-for-profit housing counseling agencies serving your region.

The 90-day notice is not a formality. New York courts have repeatedly held that strict compliance with RPAPL 1304 is a condition precedent to filing suit. If the lender skips it, sends it to the wrong address, or fails to prove proper mailing, the entire foreclosure can be dismissed. This is one of the most common and effective defenses in New York.

2. The RPAPL 1303 Homeowner Notice

When the lender does file, RPAPL § 1303 requires that the summons and complaint be accompanied by a separate “Help for Homeowners in Foreclosure” notice, printed on colored paper (not white) and in bold, specific type sizes. Defects in the 1303 notice can also be raised as a defense.

3. The Summons, Complaint, and Notice of Pendency (Lis Pendens)

The lawsuit begins when the lender files a summons and complaint in the county Supreme Court where the property is located, along with a notice of pendency (lis pendens) under CPLR Article 65, which is recorded against the property to warn buyers and lenders of the pending action. Once served, you generally have 20 days to answer if served in person, or 30 days if served another way. Filing a timely answer is critical—it preserves your defenses. If you do nothing, the lender can seek a default judgment. If you have received a lis pendens, see our page on how a notice of pendency works and, where appropriate, removing a lis pendens.

4. The Mandatory CPLR 3408 Settlement Conference

For residential owner-occupied foreclosures involving a home loan, CPLR § 3408 requires the court to hold a mandatory settlement conference, generally within 60 days after the lender files proof of service. At this conference, both sides must negotiate in good faith to reach a resolution, which may include a loan modification, forbearance, or other workout. You are entitled to bring an attorney, and the court will often provide a housing counselor. The lender must send someone with authority to modify the loan and must produce documents (such as the payment history and any modification worksheets). If the lender fails to negotiate in good faith, the court can impose sanctions, toll interest, or bar certain fees. The foreclosure is effectively paused while the case remains in the settlement conference part.

5. Motion for Summary Judgment or Default, and Judgment of Foreclosure and Sale

If no settlement is reached and the case leaves the conference part, the lender typically moves for summary judgment (or a default judgment if you never answered) and asks the court to appoint a referee to compute the amount owed. The court then issues a Judgment of Foreclosure and Sale.

6. The Foreclosure Auction and RPAPL 1341 Redemption

Only after judgment can the property be sold at a public auction, and RPAPL § 1351 requires that the sale be conducted within 90 days of judgment (subject to court practice). In New York, the homeowner’s equitable right of redemption—the right to pay the full debt and stop the sale—continues up until the moment the property is actually sold at auction. New York does not provide a statutory post-sale redemption period for mortgage foreclosures, so acting before the auction is essential.

How Long Does a New York Foreclosure Take?

Because of the judicial process, the 90-day notice, mandatory settlement conferences, and crowded court dockets, contested residential foreclosures in New York often take two to four years or longer from the first missed payment to auction—far longer than in non-judicial states. This extended timeline is one reason it is almost always worth defending: it creates room to negotiate, cure the default, or sell the home on your own terms.

The New York Statute of Limitations on Foreclosure

A mortgage foreclosure in New York is subject to a six-year statute of limitations under CPLR § 213(4). The clock generally starts when the loan is accelerated (typically when the lender demands the full balance or files a foreclosure complaint). New York’s Foreclosure Abuse Prevention Act (FAPA), enacted in 2022, sharply limits a lender’s ability to “reset” that six-year clock by voluntarily discontinuing an earlier foreclosure. If a prior foreclosure on your loan was started and later withdrawn, the timing may bar a new action entirely. This is a technical, evolving area—have an attorney review your loan history.

Defenses That Can Stop or Delay a New York Foreclosure

Beyond negotiating, many New York homeowners have valid legal defenses. Common ones include:

• Failure to comply with RPAPL 1304 or 1303 – defective, missing, or improperly mailed statutory notices.
• Lack of standing – the plaintiff must prove it held or was assigned the note and mortgage at the time the action was commenced. Broken assignment chains are a frequent problem.
• Improper service – you must be validly served under the CPLR; defective service can require dismissal.
• Statute of limitations / FAPA – as discussed above.
• Robo-signing and defective affidavits – New York requires an attorney affirmation of accuracy in residential foreclosures; unreliable or contradictory bank records can defeat summary judgment.
• Failure to negotiate in good faith at the CPLR 3408 conference – which can lead to tolled interest and sanctions.
• Violations of consumer protection statutes, including General Business Law protections and federal RESPA/TILA rules.

Raising these defenses requires a timely, well-pleaded answer with counterclaims and affirmative defenses—another reason not to let the 20/30-day response window lapse.

Ways to Keep Your Home

Reinstatement

Under RPAPL § 1341 and general mortgage law, you can stop a New York foreclosure by paying all arrears, late charges, and reasonable costs to bring the loan current—up until judgment (and, by redemption, up to the sale). If you have the funds, this is the cleanest fix.

Loan Modification

New York’s CPLR 3408 settlement conference is designed to facilitate modifications. A modification may lower your interest rate, convert an adjustable rate to fixed, extend the term, or capitalize arrears into the balance. The lender must engage in good faith, giving borrowers real leverage that does not exist in non-judicial states.

Forbearance

A temporary reduction or suspension of payments, followed by a repayment plan. Useful when the hardship is short-term.

Refinancing

Paying off the existing loan with a new one. This is realistic only early, before extensive missed payments damage your credit.

Bankruptcy

Filing under Chapter 13 in the U.S. Bankruptcy Court can trigger an automatic stay that halts the auction and lets you cure arrears over a three-to-five-year plan while keeping the home. Chapter 7 imposes a stay but does not, by itself, save a home securing a mortgage. Bankruptcy has significant consequences and should be weighed against defending in state court.

Ways to Exit While Limiting Losses

Short Sale

Selling for less than the balance owed, with the lender’s consent. Because a shortfall can trigger a deficiency judgment under RPAPL § 1371, insist that any short-sale approval waives the deficiency in writing.

Deed in Lieu of Foreclosure

Voluntarily transferring the deed to the lender in satisfaction of the debt. Again, get an explicit written waiver of any deficiency.

Understanding Deficiency Judgments

New York limits deficiency judgments: under RPAPL § 1371, the shortfall is measured against the higher of the sale price or the property’s fair market value, and the lender must move for it within 90 days of the sale—or it is deemed satisfied. Learn more on our page about judgment liens and selling a property with a lien.

Illustrative New York Scenarios

The following are general, anonymized illustrations of how New York procedure operates. They are not guarantees or predictions of any particular result.

Missing 90-day notice. A homeowner in Queens received a summons but had never gotten a proper RPAPL 1304 notice, and the lender could not prove certified mailing. In that situation, New York courts routinely dismiss the complaint, requiring the lender to start over and giving the homeowner substantial additional time.

Good-faith negotiation at the 3408 conference. A Brooklyn borrower who fell behind after a job loss used the mandatory settlement conference to obtain a trial modification, capitalizing the arrears and lowering the monthly payment—resolving the case without a judgment.

Frequently Asked Questions

How long does a foreclosure take in New York?

Because New York is a judicial-foreclosure state with a 90-day pre-foreclosure notice and mandatory CPLR 3408 settlement conferences, contested residential foreclosures commonly take two to four years or more from default to auction.

Can I stop a foreclosure after the sale in New York?

New York does not provide a statutory post-sale redemption period for mortgage foreclosures. Your equitable right of redemption ends when the property is sold at auction, so it is critical to act before then.

Is there a redemption period in New York?

Yes—an equitable right of redemption that lets you pay the full debt and stop the sale, but it lasts only up to the moment of the auction. There is no additional statutory redemption after sale.

What is the CPLR 3408 settlement conference?

It is a court-supervised, mandatory conference in residential owner-occupied foreclosures where the lender must negotiate a possible loan modification or other resolution in good faith, with sanctions if it fails to do so.

How long do I have to respond to a foreclosure summons?

Generally 20 days if you were personally served and 30 days if served by another method. Filing a timely answer preserves your defenses; missing the deadline risks a default judgment.

Talk to a New York Foreclosure Attorney

The right strategy depends on exactly where you are in the timeline and what notices and papers you have received. If you are facing foreclosure anywhere in New York City or the surrounding counties, the Law Offices of Albert Goodwin can review your loan documents, court papers, and settlement-conference options and advise you on defenses and workout alternatives. We maintain offices in Manhattan, Brooklyn, and Queens. Call 212-233-1233 or email [email protected].

About the Author

This page was prepared by the attorneys at the Law Offices of Albert Goodwin, a New York firm focused on real estate litigation, including foreclosure defense, lis pendens, quiet title, and lien disputes. The firm’s attorneys are admitted to practice in the State of New York. This article is for general information about New York law and is not legal advice; reading it does not create an attorney-client relationship. For guidance on your specific situation, please contact our office.