You have missed several mortgage payments, and there is a real possibility of facing foreclosure. Home buyers often need to pay more attention to their ability to make monthly payments. Financial hardship doesn’t come with a warning. Homeowners sometimes want to know the answer to questions like, “can I sell my home if it is in foreclosure?”
You can sometimes stop a foreclosure by selling a house underwater, but what if the foreclosure process has already begun? Can you still sell your house? Yes, but you will have to follow New York’s regulations for your home sale. Keep reading to learn more, especially if you are looking to sell a house fast in New York City.
New York’s foreclosure process is a judicial one, meaning it involves the courts and can be lengthy—often taking up to three years due to mandatory steps and potential delays. If you’re asking, “Can I sell my home if it is in foreclosure?” the answer is yes, but timing is critical. You can sell during the early stages or even later, as long as it’s before the auction, provided you can pay off the mortgage debt or get lender approval for a short sale. Below, we’ll break down the steps of foreclosure in New York and highlight key terms like pre-foreclosure, lis pendens, foreclosure auction, and deficiency judgments.
The foreclosure process starts when you miss mortgage payments. After three missed payments (typically 90 days), New York law (RPAPL § 1304) requires the lender to send a 90-day pre-foreclosure notice. This period, known as pre-foreclosure, gives you a window to catch up on payments or explore other options. During this phase, you can list your home for sale and use the proceeds to settle the debt, effectively halting the foreclosure before it escalates. Acting quickly with a real estate agent can make all the difference here.
If the debt remains unpaid after the 90-day notice, the lender can file a lis pendens—a legal notice of a pending lawsuit—along with a summons and complaint in court, marking the official start of foreclosure proceedings. You’ll receive these documents and have 20 days to respond if served in person or 30 days if by mail (CPLR § 308). Responding is critical—ideally with a foreclosure attorney’s help. You can explain your financial hardship, request a dismissal, or seek an extension. Failing to answer risks a default judgment, handing an automatic win to the lender.
Within 60 days of filing, New York requires a settlement conference (RPAPL § 1304) between you and the lender to negotiate alternatives. At this meeting, you’ll discuss the mortgage balance, late fees, and your financial situation, so bring proof of income and tax returns. You might pursue a loan modification or explore assistance from programs like the Homeowner Assistance Fund (HAF), which is available in 2025. (Note: The Home Affordable Refinance Program, or HARP, expired in 2018 and is no longer an option.) If an agreement is reached, the lender may discontinue the lawsuit, typically within a few months, depending on court processing times.
If no settlement is reached, the case moves forward in court. A referee calculates the debt, and if the lender prevails, the court issues a judgment of foreclosure and sale. Even at this stage, you can stop foreclosure by paying all past-due amounts, fees, and costs—a process called reinstatement—as long as you do so before the sale is finalized. Contact your lender or attorney to pinpoint the exact deadline, as timing is tight once the judgment is in place.
If reinstatement doesn’t happen, the home is sold at a foreclosure auction, a public sale to the highest bidder. Auction prices are often below the mortgage debt or fair market value. If the sale proceeds don’t cover the full debt, the lender can seek a deficiency judgment (RPAPL § 1371), making you liable for the shortfall.
Once the property is sold, you lose ownership and must vacate. The new owner might offer a cash-for-keys deal, paying you to leave voluntarily, or proceed with eviction. If it comes to eviction, they’re required to provide a 10-day notice to vacate (RPAPL § 713) before taking further action.
Yes, you can sell at any point before the auction. Here’s how it works:
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When considering selling a house in pre-foreclosure it’s important to understand the differences between foreclosure and pre-foreclosure. In New York, a lender cannot start foreclosure proceedings before 120 days of the first missed payment, and borrowers can use the pre-foreclosure period to catch up on missed payments.
The state requires lenders to send borrowers a letter to give a borrower 30 days to pay outstanding payments and late fees. You should contact your lender and discuss the possibility of forbearance, which is a temporary postponement of your monthly mortgage payments. Then, the lender will add these amounts to the end of your mortgage.
In addition, lenders under New York state law must send another 90-day foreclosure to homeowners before the foreclosure process can begin. It must include the days the mortgage has been delinquent, the late amount owed, the lender’s telephone number, and the contact information for HUD, the U.S. Department of Housing and Urban Development. This notice must:
You will only have to pay a late fee if you miss one payment. Homeowners who miss several payments face the foreclosure loss mitigation period. This time frame is crucial for negotiating with your lender for a loan modification or short sale.
It is best to negotiate a financial plan that you can afford so you can protect your credit score. A loan modification can include a different interest rate or a more extended period. You could negotiate a lower monthly payment for a longer term than you can afford.
In New York, where the judicial foreclosure process can drag on for years, that initial shock is paired with a ticking clock—pushing people to act before the home heads to auction. Financial hardship is a common trigger: a job loss, mounting medical bills, or a divorce can derail mortgage payments, leaving homeowners desperate to avoid losing everything. For some, the need to sell stems from life changes, like relocating for a job or inheriting a property already in distress, where keeping up with the mortgage simply isn’t feasible. Selling the home, especially to a cash buyer like Leave The Key, becomes a lifeline to escape the financial and emotional strain of foreclosure.
A quick cash sale can stop the foreclosure process in its tracks, offering a clean break without the delays of traditional listings or the uncertainty of lender negotiations. Here’s why homeowners turn to this route:
New York’s foreclosure process is notoriously lengthy, often stretching up to three years, which gives homeowners a window to take control of their situation. If you’re asking, “Can I sell my home before it gets to court?” the answer is yes—and a real estate investor like Leave The Key is your best partner to make it happen. We specialize in buying homes in danger of foreclosure, offering a fast, hassle-free cash sale that can get you out of foreclosure trouble before it’s too late.
Selling to an investor like Leave The Key means you get a cash offer quickly—often within days—without the burden of closing costs, repairs, or realtor commissions. Facing a foreclosure notice? A quick sale to us can be the lifeline you need. Unlike traditional buyers, we buy your home as-is, so you don’t have to worry about fixing it up or staging it for showings. Speed is critical in foreclosure, and our streamlined process ensures you can settle your mortgage debt and avoid a court judgment, all while sidestepping the stress of a drawn-out sale. Plus, with our expertise in distressed properties, we understand the New York foreclosure timeline and can act fast to meet your deadlines.
Other options exist, but they come with trade-offs. Consider a deed in lieu of foreclosure: you’d hand over the deed to your lender, walking away without a foreclosure sale on your credit report, but you’d lose any equity you’ve built up in the home. This might save your credit score long-term, yet it leaves you with nothing to show for your investment. Alternatively, filing for bankruptcy can temporarily stop foreclosure proceedings, giving you a breather to reorganize your finances. However, it’s a drastic step with lasting consequences—and it’s not a guarantee you’ll keep your home.
Lenders may offer to negotiate during the pre-foreclosure phase, working with you on a payment plan or modification. But these talks can drag on, and success isn’t assured—leaving you vulnerable if time runs out. Compare that to selling to Leave The Key: we cut through the uncertainty with a straightforward solution. You get cash in hand to pay off your lender, protect your credit from a foreclosure mark, and move forward without the emotional toll of losing your home in court. When every day counts, a real estate investor like us is unmatched for speed, simplicity, and certainty.
If you’re facing foreclosure in New York, you don’t have to let the process run its course—you can still sell your home and take control of the situation. One option is to list your property with a realtor and try for a traditional sale. However, the real estate market can be unpredictable and slow, which isn’t ideal when time is running out. With New York’s foreclosure timeline potentially stretching up to three years, you might think you have room to wait—but as the auction date nears, the pressure mounts, and a drawn-out sale may no longer be an option.
That’s where investors like Leave The Key can step in as your fastest and most dependable alternative. We specialize in purchasing homes in foreclosure, offering you a cash deal and a quick closing—often in just days. Unlike a traditional sale, you won’t need to deal with repairs, open houses, or realtor fees. While our cash offer process on a house may be lower than what you’d fetch on the open market, the speed, simplicity, and certainty we provide are unmatched. For homeowners eager to settle their mortgage debt and avoid the stress of foreclosure, selling to Leave The Key is the smart choice. You can even sell right up until the auction date—once that sale is final, you lose all rights to the property, so acting quickly is key.
Communication with your lender is also essential, and we can help with that too. Most lenders prefer a full payoff from a sale over a loss at auction, and they may pause foreclosure proceedings if they know a deal is in progress. At Leave The Key, we’ll not only make you a fair cash offer but also assist in coordinating with your lender to ensure they’re informed of the imminent sale. With our deep understanding of New York’s foreclosure laws, we’ll guide you every step of the way—from offer to closing—helping you stop foreclosure in its tracks and move forward with peace of mind.
In New York, specific laws govern the process of selling a house during foreclosure, shaped by the state’s judicial foreclosure system. Below is an outline of the key legal provisions focusing strictly on the statutory framework.
New York operates under a judicial foreclosure process, requiring lenders to file a lawsuit in court to foreclose on a property (Real Property Actions and Proceedings Law, RPAPL § 1301 et seq.). Legally, the homeowner retains the right to sell the property until the auction occurs, after which all ownership rights are extinguished.
Once foreclosure proceedings begin, homeowners can still sell the property prior to the auction, subject to certain legal conditions:
Post-auction, if the property sells for less than the outstanding debt, lenders may pursue a deficiency judgment under RPAPL § 1371. This allows them to claim the difference between the sale price and the debt, provided they file a motion within 90 days of the sale.
The statute of limitations for foreclosure in New York is six years from the date of default or debt acceleration (CPLR § 213[4]). If a lender fails to file within this period, the foreclosure action is barred, potentially freeing the homeowner to sell without legal pressure, assuming no prior judgment exists.
Every homeowner faces financial challenges at some point in their life. The thought of foreclosure might be terrifying, but it doesn’t have to be. If you’ve been wondering, “can i sell my home if it is in foreclosure?” know there is a solution to every problem. Lenders will work with homeowners to ensure that every option to save their home is covered. Homeowners must take immediate action if foreclosure is a possibility.
If you’re looking for cash home buyers in New York, then you’re at the right place. Brooklyn and Manhattan homeowners know they will be taken off their hands quickly. We also buy houses in foreclosure in Long Island, so, no matter where you are in the state, contact us today to find out more!
