Behind on Your Mortgage in New York: Where to Get Help

If you are behind on your mortgage in New York, call your loan servicer now and ask what hardship options it offers, then call the free state hotline at 1-855-HOME-456 (1-855-466-3456) for a housing counselor or lawyer. Nobody can take your home quickly: federal rules generally bar a foreclosure filing until you are more than 120 days behind, New York requires a 90-day warning notice first, and owner-occupants get a court-supervised settlement conference.

The earlier you act, the more options you have. This guide lists them in the order most people try them, explains each New York step, and shows where to get help that costs nothing.

Your options, in the order to try them

All of these are forms of what servicers call loss mitigation. You ask for them through your servicer (the company you send payments to), usually with a hardship application. A housing counselor can fill it out with you.

1. 1

   1. Call your servicer before or right after the first missed payment

   Explain the hardship (job loss, illness, divorce, a death in the family), ask what programs the investor on your loan allows, and ask for a loss mitigation application. Write down the date, the name of the person and what they said.
2. 2

   2. Forbearance (a short pause)

   The servicer pauses or lowers payments for a set time. The CFPB stresses that forbearance does not erase what you owe: the skipped amount is repaid later as a lump sum, added to the end of the loan, or through higher payments, and interest may keep accruing. Best for a short, clearly temporary hardship.
3. 3

   3. Repayment plan (catching up over time)

   You resume the regular payment plus an extra amount each month until the arrears are paid. Works when your income is back to normal and the hole is small.
4. 4

   4. Loan modification (permanent change)

   The lender changes the loan terms: a longer term, a lower rate, or deferring or reducing part of the principal. Check how the new payment and total amount owed change over the short and long term before you accept, because failing a modification can still lead to foreclosure.
5. 5

   5. If you cannot keep the home

   A short sale (selling for less than you owe with the lender’s approval) or a deed in lieu of foreclosure (handing the home to the lender) can end the case without a foreclosure sale; both are options New York’s settlement conference law lists. Ask a counselor or lawyer about the consequences first: DFS warns that a settlement that forgives debt can leave you owing additional taxes.

How foreclosure works in New York

New York is a judicial foreclosure state: the lender has to sue you in court and get a judgment before the home can be sold. That takes time, and it gives you several chances to settle.

1. Missed payments

   Servicer outreach and loss mitigation

   You can apply for help at any point. Federal rules generally block a foreclosure filing until you are more than 120 days behind.

2. 90+ days before suit

   90-day pre-foreclosure notice (RPAPL § 1304)

   Mailed by registered or certified mail and first-class mail, in its own envelope, headed “YOU MAY BE AT RISK OF FORECLOSURE.” It must say how many days and dollars you are in default and list at least five housing counseling agencies in your county.

3. Lawsuit filed

   Summons and complaint

   You must be served. File an Answer within 20 days if handed the papers personally, or 30 days if served another way. The Answer is where you raise defenses, such as a defective 90-day notice.

4. Within 60 days of proof of service

   Mandatory settlement conference (CPLR § 3408)

   For home loans where you live in the home. The lender must file proof of service within 20 days of serving you; the court then holds the conference within 60 days. Both sides must negotiate in good faith and bring documents. If you missed the Answer deadline, you can file one within 30 days of your first conference appearance.

5. If no settlement

   Judgment of foreclosure and sale

   The court orders a sale. Ask your lawyer or counselor right away what options are still open before the sale date.

6. After the sale

   Surplus, deficiency and possession

   If the home sells for more than you owe, you can ask the court for the surplus. If it sells for less, the lender may seek a deficiency judgment, which you may be able to contest. You cannot be put out of the home without a court order.

Why the settlement conference matters

The conference is your best chance to get a modification on the record. CPLR § 3408 says good faith is judged on the totality of the circumstances, and simply rejecting an offer is not bad faith. If the lender drags its feet, the court must at least toll (stop) interest, costs and fees for the delay it caused, and it can also order documents produced, impose a civil penalty of up to $25,000, or award damages. If you come without a lawyer, the law treats you as having asked for “poor person” relief, and if the court assigns you a lawyer the conference is adjourned so your lawyer can prepare.

Free help in New York

HOPP lines are staffed weekdays from 9am to 5pm; if you leave a message, the program says to expect a call back within three business days. For legal help in a court case, DFS also points to LawHelp.org and the NYS Bar Association lawyer referral service.

What to gather before you call

• Your most recent mortgage statement (loan number, servicer, amount past due).
• Two recent pay stubs or benefit letters, and your last two tax returns.
• Two to three months of bank statements.
• A short hardship letter: what happened, when, and whether it is temporary or permanent.
• A monthly budget showing what you can actually pay.
• Any letters from the servicer and the 90-day notice if you received one.

Keep paying property taxes and insurance if they are not escrowed. DFS’s foreclosure bill of rights says you can stay in the home until a court orders you to leave, but you must keep maintaining the property and paying applicable taxes, and abandoning the home can let the lender use a faster foreclosure process. If you have an escrow account, see our guide to mortgage escrow accounts. NYC owners who fall behind on property taxes or water bills face a separate risk; read about the NYC tax lien sale.

Foreclosure rescue scams

People in default get targeted. The FTC’s rule on mortgage assistance relief services (the MARS Rule) says a company cannot charge you anything until you have a written offer from your lender and you accept it. Licensed attorneys are a narrow exception and must hold any upfront money in a client trust account.

Report scams to the FTC at ReportFraud.ftc.gov, to the NY Attorney General, or to the DFS Consumer Hotline at (800) 342-3736. Deed scams are a serious problem in NYC; see how to protect your home from deed theft.

If you are older or have a reverse mortgage

Reverse mortgages can also go into default, usually for unpaid property taxes or insurance. The 90-day notice rules cover them, with a different heading. Read reverse mortgage basics and call HOPP. Seniors may also qualify for property tax help; see the senior and disabled homeowner exemption checker.

Next steps

• Today: call your servicer, then 1-855-466-3456.
• This week: send a complete hardship application and keep the delivery receipt.
• Before any court date: get a lawyer through HOPP or LawHelp.org, and file your Answer on time.
• Once you are current: rebuild a cushion with our homeowner emergency fund calculator.

This is general information, not legal advice. Foreclosure outcomes depend on your loan, your servicer and the court.