How to Stop a Foreclosure in New York
Reviewed by DocDraft Legal Team · New York · Last updated 2026-08-31
Foreclosure is the legal process a lender uses to take and sell your home after you fall behind on the mortgage. Stopping it means resolving the default or paying what is owed before the court sale is final. In New York, all mortgages are foreclosed judicially through the courts; the one-action rule under RPAPL 1301 requires the lender to proceed through a lawsuit. Before starting that lawsuit on a home loan, the lender must send the borrower a 90-day pre-foreclosure notice under RPAPL 1304. New York has no general statutory right to cure or reinstate the loan by paying only the arrears; instead, the borrower has an equity of redemption, meaning the right to pay the full amount due to redeem the property at any time before the foreclosure sale. There is no post-sale statutory redemption once the sale is complete; the equity of redemption is cut off by the sale (RPAPL 1352). A deficiency judgment is allowed but limited: the lender must seek it by motion within 90 days after delivery of the deed, and the deficiency equals the debt less the higher of the market value or the sale price (RPAPL 1371).
Find out where you stand in New York
Where are you in the foreclosure process?
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How do I stop a foreclosure in New York?
In New York, foreclosures are judicial, filed as court lawsuits under RPAPL 1301. You can stop the process by responding to the 90-day pre-foreclosure notice under RPAPL 1304, filing a written answer to the lawsuit, negotiating loss mitigation, or paying the full amount due to redeem the property before the sale.
What is the foreclosure timeline in New York?
For a home loan in New York, the lender must first send a 90-day pre-foreclosure notice under RPAPL 1304. After those 90 days, it may file a foreclosure lawsuit, which is often followed by a settlement conference. Only after a judgment does the court order the property sold at a foreclosure sale.
Can I reinstate my mortgage to stop foreclosure in New York?
New York has no general statutory right to reinstate a home loan by paying only the arrears. Instead, the borrower has an equity of redemption under RPAPL Article 13, meaning the right to pay the full amount due to redeem the property at any time before the foreclosure sale is held.
Can the lender pursue me for the balance after foreclosure in New York?
Sometimes. Under RPAPL 1371, a lender may seek a deficiency judgment by motion within 90 days after delivery of the deed following a New York foreclosure sale. The deficiency equals the debt with interest and costs, less the higher of the property's market value or the sale price.
New York foreclosure law at a glance
New York foreclosure is judicial. All mortgages are foreclosed through the courts, and the one-action rule under RPAPL 1301 requires the lender to proceed by lawsuit under RPAPL Article 13. Before commencing a foreclosure on a home loan, the lender must send the borrower a 90-day pre-foreclosure notice under RPAPL 1304. New York provides no general statutory right to cure or reinstate by paying only the arrears; the borrower instead holds an equity of redemption and may pay the full amount due to redeem the property at any time before the foreclosure sale. Once the sale is complete, that equity of redemption is cut off, and there is no post-sale statutory redemption (RPAPL 1352). A deficiency judgment is allowed but limited: it must be sought by motion within 90 days after delivery of the deed, and it equals the debt less the higher of market value or the sale price (RPAPL 1371).
Stopping a New York foreclosure after a 90-day notice
Suppose you are several months behind on your New York home loan and your lender sends a 90-day pre-foreclosure notice under RPAPL 1304. During those 90 days you can seek a loan modification or other loss mitigation before any lawsuit begins. If the default is not resolved, the lender files a judicial foreclosure, and you must serve a written answer by the deadline or risk a default judgment. Because New York has no arrears-only reinstatement statute, your path to keep the home is a workout, or paying the full amount due to redeem before the sale. Many cases include a mandatory settlement conference where a modification can be negotiated. Once the court orders the sale and the deed is delivered, the equity of redemption is cut off (RPAPL 1352). Attorney review of your answer or loss-mitigation paperwork is available through DocDraft.
Court Resources
Find a HUD-Approved Housing Counselor (CFPB)
Free tool to locate HUD-approved housing counseling agencies that help New York homeowners with loss mitigation, loan modification, and lender negotiations at no cost.
New York State Homes and Community Renewal (HCR)
State housing agency with homeowner protection resources and the statewide network of housing counseling and legal services for New Yorkers facing foreclosure.
New York Courts CourtHelp
Official self-help portal of the New York State Unified Court System, including guidance on responding to a foreclosure lawsuit and settlement conferences.
LawHelpNY
Statewide directory of free and low-cost legal aid for income-qualified New York residents, including housing and foreclosure matters.
Relevant Laws
RPAPL 1301 (One-action rule; judicial foreclosure)
Requires a mortgage to be foreclosed through the court system, barring a separate action on the debt while the foreclosure is pending. New York has no non-judicial power-of-sale process for mortgages.
RPAPL 1304 (90-day pre-foreclosure notice)
Requires the lender to send the borrower a prescribed written notice at least 90 days before commencing a foreclosure action on a home loan, including housing counseling information.
RPAPL 1352 (Judgment vesting title; equity of redemption cut off)
Provides for the judgment and sale that convey title, cutting off the borrower's equity of redemption. There is no post-sale statutory redemption after a New York foreclosure sale.
RPAPL 1371 (Deficiency judgment)
Allows a deficiency judgment by motion within 90 days after delivery of the deed. The deficiency equals the debt, with interest and costs, less the higher of the property's market value or the sale price.
Regional Variances
New York foreclosure rules vs national norms
Process type
Judicial only. All mortgages are foreclosed through the courts under RPAPL Article 13, and RPAPL 1301 codifies the one-action rule. Unlike power-of-sale states, New York gives no lender a way to sell a home outside a court proceeding.
Notice timeline
Before commencing a foreclosure on a home loan, the lender must send a 90-day pre-foreclosure notice under RPAPL 1304. This statutory pre-suit notice is longer than the 30-day notices common in many other states.
Reinstatement right
No general statutory arrears-only reinstatement. New York borrowers instead hold an equity of redemption and may pay the full amount due to redeem the property before the sale. Loss mitigation and settlement conferences are the practical routes to keep the home.
Redemption after sale
None. Under RPAPL 1352 the sale conveys title free of the borrower's interest, and the equity of redemption is cut off by the sale. Some states allow months of post-sale redemption; New York does not.
Deficiency judgment
Allowed but limited. Under RPAPL 1371 the lender must move within 90 days after delivery of the deed, and the deficiency equals the debt less the higher of the market value or the sale price, protecting borrowers from low sale prices.
The judicial process and settlement conference in New York
The foreclosure lawsuit (the required path)
Filed in court under RPAPL Article 13 after the RPAPL 1304 notice period. A borrower served with a summons and complaint must serve a written answer by the stated deadline or risk a default judgment, which can lead to a court-ordered sale.
The settlement conference (a chance to negotiate)
New York home-loan foreclosures typically include a mandatory settlement conference where the borrower and lender attempt a loan modification or other workout. This conference can pause the case and is often the best opportunity to keep the home before the equity of redemption is cut off at sale.
Suggested Compliance Checklist
Confirm your foreclosure is judicial
As soon as you fall behind or receive any notice days after startingEvery New York mortgage foreclosure is judicial, filed as a court lawsuit under RPAPL 1301 and Article 13. There is no trustee's power of sale. Knowing this tells you to expect a 90-day notice, a summons, a possible settlement conference, and a court-ordered sale, and to prepare a written answer.
Read the 90-day pre-foreclosure notice and calendar the deadline
Immediately upon receiving the RPAPL 1304 notice days after startingFor a home loan, RPAPL 1304 requires a 90-day pre-foreclosure notice before the lawsuit is filed. Note the date sent, calendar the end of the 90-day window, and use the time to contact the housing counselors listed in the notice and pursue loss mitigation.
Contact your servicer and apply for loss mitigation or a loan modification
During the 90-day notice period, the earlier the better days after startingAsk your loan servicer about a loan modification, forbearance, repayment plan, short sale, or deed in lieu. A hardship letter and financial documentation usually support the request, and approval can stop the foreclosure. Attorney review of your loss-mitigation package is available through DocDraft.
Serve a written answer to the foreclosure lawsuit
By the deadline stated on the summons days after startingIf a foreclosure is filed, you are served with a summons and complaint and must serve a written answer by the deadline or risk a default judgment. A timely answer preserves your defenses and your right to the settlement conference. Attorney review of your answer is available through DocDraft.
Prepare for the mandatory settlement conference
Before your scheduled settlement conference date days after startingNew York home-loan foreclosures typically include a mandatory settlement conference. Gather income documentation and a proposed workout so you can negotiate a loan modification with the lender. This conference is often the best opportunity to keep the home before any sale is ordered.
Consult a HUD-approved housing counselor
As early as possible in the process days after startingHUD-approved housing counseling agencies and the state Homeowner Protection Program network assist New York homeowners with loss mitigation and lender negotiations at no cost. Use the CFPB counselor finder to locate one, and compare modification and redemption options before any sale.
Understand redemption is only before the sale
Before any court-ordered foreclosure sale days after startingNew York has no post-sale redemption. Under RPAPL 1352 the sale cuts off your equity of redemption, so paying the full amount due to redeem must happen before the sale. Confirm the sale date and the exact payoff amount in writing if redemption is your plan.
Confirm your deficiency exposure before any sale
Before agreeing to any sale, short sale, or deed in lieu days after startingUnder RPAPL 1371 the lender must move for a deficiency within 90 days after delivery of the deed, and the deficiency is limited to the debt less the higher of market value or sale price. Understand this exposure before signing anything. Attorney review of your file is available through DocDraft.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm your foreclosure is judicial | Every New York mortgage foreclosure is judicial, filed as a court lawsuit under RPAPL 1301 and Article 13. There is no trustee's power of sale. Knowing this tells you to expect a 90-day notice, a summons, a possible settlement conference, and a court-ordered sale, and to prepare a written answer. | - | As soon as you fall behind or receive any notice |
| Read the 90-day pre-foreclosure notice and calendar the deadline | For a home loan, RPAPL 1304 requires a 90-day pre-foreclosure notice before the lawsuit is filed. Note the date sent, calendar the end of the 90-day window, and use the time to contact the housing counselors listed in the notice and pursue loss mitigation. | - | Immediately upon receiving the RPAPL 1304 notice |
| Contact your servicer and apply for loss mitigation or a loan modification | Ask your loan servicer about a loan modification, forbearance, repayment plan, short sale, or deed in lieu. A hardship letter and financial documentation usually support the request, and approval can stop the foreclosure. Attorney review of your loss-mitigation package is available through DocDraft. | - | During the 90-day notice period, the earlier the better |
| Serve a written answer to the foreclosure lawsuit | If a foreclosure is filed, you are served with a summons and complaint and must serve a written answer by the deadline or risk a default judgment. A timely answer preserves your defenses and your right to the settlement conference. Attorney review of your answer is available through DocDraft. | - | By the deadline stated on the summons |
| Prepare for the mandatory settlement conference | New York home-loan foreclosures typically include a mandatory settlement conference. Gather income documentation and a proposed workout so you can negotiate a loan modification with the lender. This conference is often the best opportunity to keep the home before any sale is ordered. | - | Before your scheduled settlement conference date |
| Consult a HUD-approved housing counselor | HUD-approved housing counseling agencies and the state Homeowner Protection Program network assist New York homeowners with loss mitigation and lender negotiations at no cost. Use the CFPB counselor finder to locate one, and compare modification and redemption options before any sale. | - | As early as possible in the process |
| Understand redemption is only before the sale | New York has no post-sale redemption. Under RPAPL 1352 the sale cuts off your equity of redemption, so paying the full amount due to redeem must happen before the sale. Confirm the sale date and the exact payoff amount in writing if redemption is your plan. | - | Before any court-ordered foreclosure sale |
| Confirm your deficiency exposure before any sale | Under RPAPL 1371 the lender must move for a deficiency within 90 days after delivery of the deed, and the deficiency is limited to the debt less the higher of market value or sale price. Understand this exposure before signing anything. Attorney review of your file is available through DocDraft. | - | Before agreeing to any sale, short sale, or deed in lieu |
Frequently Asked Questions
Foreclosure is the legal process a lender uses to take and sell your home when you fall behind on the loan. In New York, foreclosure is judicial, meaning it is filed as a court lawsuit under RPAPL Article 13, and the one-action rule of RPAPL 1301 requires the lender to proceed through the courts.
A judicial foreclosure is a court lawsuit ending in a court-ordered sale, and it is the only route in New York under RPAPL 1301. A non-judicial foreclosure uses a trustee's power of sale to sell outside court, which New York does not permit for mortgages, so every case goes through a judge.
For a home loan, RPAPL 1304 requires the lender to send a 90-day pre-foreclosure notice before commencing any legal action against the borrower. This written notice must arrive at least 90 days before the lawsuit is filed and includes information about housing counseling resources you can contact.
New York has no general statutory right to reinstate a home loan by paying only the arrears. Instead, under RPAPL Article 13 the borrower holds an equity of redemption, the right to pay the full amount due to redeem the property at any time before the foreclosure sale is held.
No. New York provides no post-sale statutory redemption. Under RPAPL 1352, the foreclosure sale conveys title free of the borrower's interest, and the equity of redemption is cut off by the sale. Your chance to redeem exists only by paying the full amount due before the sale takes place.
Yes, but it is limited. Under RPAPL 1371, the lender must move for a deficiency judgment within 90 days after delivery of the deed following the sale. The deficiency equals the debt, with interest and costs, less the higher of the property's market value or the sale price.
If the default is not resolved during the RPAPL 1304 notice period, the lender files a foreclosure lawsuit. You must serve a written answer by the deadline in the summons or risk a default judgment. Many home-loan cases then include a mandatory settlement conference before the court orders any sale.
New York homeowners can get free help from HUD-approved housing counselors and the state Homeowner Protection Program network, which assist with loss mitigation at no cost. LawHelpNY connects income-qualified homeowners with legal aid. Acting early, before or during the 90-day notice, gives you the most options.
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