The lender may now consider the loan in default after 60 days, under the mortgage terms.

Before a lender can file a foreclosure in New York, if your mortgage is for a home you live in, the lender must send you a 90-day pre-foreclosure notice (require under RPAPL §1304). This gives a full 90 day window of opportunity to try to work with your lender to find an alternative to foreclosure.

This Notice will include:

• The amount due

• The lender's contact info

• A list of HUD-Approved housing counselors

• A statement that you have 90 days before a foreclosure case can be filed

This is NOT the same as being served, it is a required warning letter, not a court document. For 90 days the lender can not take any legal action. This is sent by certified and first-class mail, not hand delivered by a process server. At this time no court has been involved, there's no case number or legal filling.

For many homeowners, the demand letter is the first official wake-up call that the lender is serious.

You'll receive the Breach/ Demand letter shorlty after or around the same time as the 90-day Pre-foreclosure notice ends. If you received this letter the clock is ticking—its your last chance to fix things before the lender goes public with a Lis Pendens and starts damaging your credit.

You will be given 30 days to pay the past due amount including any late fees

Once the deadline expires, the lender can move straight into filing the foreclosure complaint.

If you can not pay in full contact your lender to discuss posible loan modifications or repayment plans before your credit starts to see a bigger impact. 

When you're served, you get Two key documents. The Summons and the Complaint, which is right around the same time the Lis Pendens is being filed with the county clerk.

Think of the Summons as your official "you're being sued" letter and the Complaint is the lender's "story"—their legal argument for why they should win the case. The Lis Pendens is a public notice that alerts the entire world—lenders, investors, credit bureaus that your property is involved in a foreclosure case.

Note, You'll have:
• 20 days to respond if served in person.
• 30 days if served by mail or other metods.
 Ignoring it = automatic loss of your case. Responding (is called Filling an Answer) gives you a fighting chance to delay or even stop the process.

The Complaint will include:

• How far behind you are on payments.

• How much you ow to bring your loan curent.

• Contact information for your lender or servicer.

• A request that the court allow the lender to foreclose and sell your home.

• A list of free, state-approved housing counselors.

The Summons will include:

• Lists your name, the court, and the case number.
• Tells you that you are being sued for foreclosure.
• Warns that you must respond within 20 days. (if served in person) or 30 days (if served by mail or substituted service)
• Explains that if you don’t respond, the lender can win by default judgment — meaning they automatically get the right to foreclose.

A Lis Pendens (Latin for "pending Lawsuit") is a public legal notice filed by the lender in the county clerks office when they start a foreclosure lawsuit.

Typically after 90-120 days of none payment and the Pre-Foreclosure notice period has passed.

This filling marks the official start of the court process, which means the property is now tied up in court and all creditors are made aware of the active foreclosure case against the property.

This brings serious ripple affects.

• Credit Impact: Loan modifications and refinancing opportunities start to fade away as they require good credit.

•Equity Risk: Lenders will pile late fees, hit you with penalties, legal fees and interest which all consume away at your home's equity

👉 Note: You'll also noticed more scam calls and companies reaching out, all claiming to so "help" or "stop foreclosure" for a fee or ask people to sign over their deed. 

Once a summons and complaint has been served (can take up to 7-9 months) The Court Schedules a "settlement conference" with 60 days. You should talk to an attorney or housing counselor before this conference. You should bring recent paystubs and even tax returns if possible.

You will need to respond to the summons and complaint. If you do not respond, the court can rule against you and schedule a foreclosure sale. If you do respond, the court will rule whether a foreclosure can occur based on the evidence presented.

The sale happens around 4 months after the court ruling, by law- a notice of sale is published in a general circulation newspaper once a week for atleast 4 weeks prior to the sale. According to DFS.NY.GOV the foreclosure process in New York State takes about 445 days (15 months) from the date of the first missed payment to the sale of the home.

Yes—as long as your home sells for enough to cover what you owe on the mortgage, plus any late fees and legal costs. Keep in mind that every day that passes in foreclosure, that eats into your equity as bank fees will start to pile daily. Act fast there's always options, you can still walk away with cash in hand and your credit protected. 

Sometimes Loan Modifications isnt an option because it can drag on for months and require ongoing proof of hardship, while Refinancing usually demands having good credit and stable income.

We guide homeowners like yourself through every step of the way and explorer every option available — We connect you with trusted local professionals, help you understand your equity position, and make sure you walk away with the maximum value possible. Our consultation is 100% confidential and free. 

At Ruano Real Estate, we specialize in helping homeowners sell before it’s too late — not by pressuring them, but by protecting what they’ve worked for.

We’ll give you clear options, a fair cash offer, and honest guidance — even if selling to us isn’t the right move for you.