A foreclosure notice does not mean your home will be sold next week. New York uses a judicial foreclosure process, which means a lender generally must go through the courts before it can foreclose and sell a home.
For homeowners, the process typically begins before a lawsuit is filed and can proceed through several stages, including a 90-day pre-foreclosure notice, filing and service of a lawsuit, mandatory settlement conferences, litigation, a judgment of foreclosure and sale, and, if the case is not otherwise resolved, an auction. The timeline varies considerably from one case to another, which is why understanding where you are in the process matters.
Step 1: The 90-Day Pre-Foreclosure Notice
For covered home loans, New York generally requires the lender, assignee, or mortgage servicer to send the borrower written notice at least 90 days before initiating foreclosure proceedings. The notice must include information about the default, the amount required to catch up, and resources for foreclosure-prevention assistance.
This 90-day period gives homeowners an opportunity to address the default before litigation begins. Depending on the circumstances, this may include exploring a loan modification or another form of loss mitigation.
Receiving the notice does not mean a foreclosure case has already been filed. It is also not an eviction notice. The homeowner generally remains the property owner unless and until it is sold.
Step 2: The Lender Files a Foreclosure Lawsuit
If the default is not resolved, the lender may file a foreclosure action after satisfying applicable pre-foreclosure requirements.
The case begins with a Summons and Complaint. The lender also files a notice known as a lis pendens, which provides notice that litigation involving the property is pending. The homeowner must then be served with the lawsuit.
Being served is an important point in the foreclosure timeline because the homeowner must respond to the lawsuit. An Answer allows the homeowner to respond to the lender’s allegations and raise applicable defenses.
Ignoring the lawsuit can allow the lender to seek a default judgment, so homeowners should not assume that participating in loss mitigation eliminates the need to address court papers.
Step 3: The Case Enters Mandatory Settlement Conferencing
Many residential foreclosure cases involving an owner-occupied home loan proceed to a mandatory settlement conference.
Under New York law, the court generally holds the conference within 60 days after the required proof of service is filed. The purpose is to determine whether the parties can reach a resolution that may avoid foreclosure.
This is an important part of the New York foreclosure process because loss mitigation and foreclosure litigation can occur simultaneously.
The homeowner and lender may discuss options such as a loan modification or another available workout. Both sides are required to negotiate in good faith. Motions are generally held in abeyance while the settlement conference process is ongoing, other than motions addressing compliance with the settlement conference requirements.
There may be more than one conference if additional time is needed to determine whether a resolution is possible.
Step 4: The Foreclosure Case Moves Into Litigation
If the foreclosure is not resolved during settlement conferencing, the case may proceed through the ordinary litigation process.
The parties may exchange documents and other information through discovery. Motions may also become a significant part of the case. For example, the lender may seek summary judgment, asking the court to rule in its favor without a trial. A homeowner may oppose the motion or raise other legal issues depending on the facts and procedural history.
Not every foreclosure follows the same path. Some cases are resolved through loss mitigation or settlement. Others involve significant disputes about the lender’s evidence, compliance with New York foreclosure requirements, or other defenses.
This stage can significantly affect how long the foreclosure takes.
Step 5: Judgment of Foreclosure and Sale
A home cannot simply be scheduled for auction because the lender filed a lawsuit.
The lender must obtain a judgment of foreclosure and sale. New York Courts explains that this can occur after a homeowner defaults by failing to answer, after the lender succeeds on summary judgment, or after the lender prevails at trial.
Before the judgment is entered, an Order of Reference may direct a referee to calculate the amount owed under the mortgage, including principal, interest, fees, and applicable costs. The lender can then ask the court for a judgment authorizing the foreclosure sale.
A judgment is therefore a much later stage than receiving the initial 90-day notice or even being served with the foreclosure complaint.
Step 6: The Foreclosure Auction Is Scheduled
After the court enters a judgment of foreclosure and sale, a referee can schedule the property for public auction.
The sale must be advertised before the auction. New York courts state that the plaintiff publishes notice of the auction at least 30 days before the auction date.
Until the auction actually occurs, developments in the case may still affect whether the sale proceeds. In Brooklyn, for example, the Kings County Supreme Court notes that scheduled properties are sometimes not sold due to judicial stays or forbearance agreements.
A scheduled auction should nevertheless be treated seriously. Waiting until this stage can substantially narrow the time available to evaluate legal options.
How Long Does Foreclosure Take in New York?
There is no single timeline that applies to every homeowner.
New York Courts gives a general estimate of about one year from the filing of a foreclosure case to the sale of the home. That figure should not be treated as a deadline or prediction for an individual case.
A case can take longer because of settlement conferences, loss mitigation applications, contested motions, discovery, trial, court schedules, appeals, or other developments. An uncontested case may proceed differently from one in which the homeowner actively raises defenses.
Talk to a Foreclosure Defense Attorney Today
The New York foreclosure process offers homeowners opportunities to pursue loss mitigation and defend their legal rights, but those options can change as a case progresses. The Law Offices of Erin E. Wietecha represents homeowners facing foreclosure in Brooklyn, Queens, Nassau County, Suffolk County, and surrounding New York communities. If you are facing foreclosure, contact our office to discuss the status of your case and what options may still be available.
Frequently Asked Questions
Can a lender foreclose immediately after I miss a mortgage payment?
Generally, no. For home loans covered by New York’s pre-foreclosure notice law, the lender, assignee, or servicer must provide the required 90-day notice before commencing a foreclosure action. Other federal and state requirements may also affect when a foreclosure can begin.
Do I still need to answer the foreclosure lawsuit if I am applying for a loan modification?
Yes. Participating in settlement conferences or pursuing loss mitigation does not mean you should ignore the Summons and Complaint. New York Courts specifically warns homeowners that they must address the complaint even when a settlement conference is scheduled.
How soon does the foreclosure settlement conference happen?
For qualifying residential foreclosure cases, New York law generally requires a mandatory conference within 60 days after the plaintiff files the required proof of service. The court sends the parties notice of the conference.
Can a foreclosure still be stopped after a judgment is entered?
Options become more limited as a foreclosure advances, but entry of a judgment does not necessarily mean the property has already been sold. What may still be possible depends heavily on the procedural posture and facts of the case. Homeowners facing a judgment or scheduled auction should seek legal advice promptly.
