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Facing foreclosure in NYC? Know your options before the auction
Plain-English options for Brooklyn and New York City homeowners who are behind on their mortgage, where to get free help, and how selling with a licensed broker can fit in.
Start with free help
New York State Homeowner Protection Program (HOPP): call 855-466-3456 (855-HOME-456) or visit homeownerhelpny.org to be connected with a free housing counselor or legal services lawyer.
Center for NYC Neighborhoods: free help for New York City homeowners at cnycn.org.
HUD-approved housing counselors: free or low-cost, find one at HUD's counselor search or the CFPB counselor finder.
If you were served court papers, do not ignore them. Most owner-occupied 1–4 family homes get mandatory settlement conferences in court (CPLR 3408) where you can work with your lender, often with a free lawyer or counselor. See the New York Attorney General's homeowner resources and NY Department of Financial Services help for homeowners.
Your main options
1. Stay in the home: loan modification, repayment plan or forbearance
Your mortgage servicer may agree to change the loan terms, spread out missed payments or pause them. A free housing counselor can help you apply. You never need to pay anyone an upfront fee for this.
2. Catch up (reinstatement)
Paying the past-due amount plus fees can stop the process. Ask your servicer for a written reinstatement figure.
3. Sell before the auction
If your home is worth more than you owe, a regular sale on the open market can pay off the loan and leave you the remaining equity, instead of losing it at auction. Timing matters: listing, showings, contract and closing take time, so the earlier you start, the more options you have. This is where a licensed broker helps.
4. Short sale
If you owe more than the home is worth, the lender may approve a sale for less than the balance. It requires the lender's approval and can take months. Ask a lawyer about any remaining debt and a tax professional about taxes.
5. Deed in lieu, bankruptcy and other legal options
Giving the home back to the lender, or bankruptcy, are legal decisions with serious consequences. Get advice from a lawyer or free legal services first.
What Senator Realty does, and does not do
- We are a licensed New York real estate broker. We can help you price your home, list it on the open market, and handle showings, offers and the path to closing, including working with your attorney and, for short sales, with your lender's process.
- No upfront fees. A broker commission is paid only if your home is sold, under a written listing agreement you sign.
- We do not give legal advice, negotiate loan modifications, promise to stop a foreclosure, or ask you to sign over your deed or send payments to us.
- Everything you share is kept confidential.
We will also point you to free counseling first, so you can decide whether selling is right for you.
Foreclosure questions
Can I sell my house if it is in foreclosure in New York?
Usually yes. Until the foreclosure auction happens you still own the home and can generally sell it. The sale must pay off the mortgage and other liens, or the lender must approve a short sale. Talk to a lawyer or a free housing counselor about your specific case.
What is a short sale?
A short sale is when the lender agrees to accept less than what is owed so the home can be sold. It needs the lender's written approval, can take months, and may have credit and tax consequences. Ask an attorney or tax professional about any remaining balance (deficiency) and taxes.
How long does foreclosure take in New York?
New York uses a court process. After the 90-day pre-foreclosure notice the lender has to file a case, there are mandatory settlement conferences for most owner-occupied 1–4 family homes, and a judge must enter a judgment before any auction. It often takes many months or longer, but every case is different and deadlines in your papers are real.
Where can I get free foreclosure help in New York?
Call the New York State Homeowner Protection Program hotline at 855-466-3456 (855-HOME-456) or visit homeownerhelpny.org to be connected with a free, state-funded housing counselor or legal services lawyer. HUD-approved housing counselors are also free.
Do you charge an upfront fee?
No. We are a licensed real estate broker. We never charge upfront fees and we do not negotiate loan modifications. If you choose to list your home with us, a commission is paid only from a completed sale, as set out in a written listing agreement.
This page is general information, not legal advice. Laws and programs change; confirm details with a lawyer or a free housing counselor.