When you fall behind on your mortgage payment, you could potentially lose your home. New York has consumer protections that help you prevent foreclosure of your property.
Take these steps if you have difficulty paying your mortgage and have concerns about foreclosure in New York.
Ask about a loan modification
Your lender may be willing to work with you on a solution if you let them know about your inability to pay. For example, some mortgage companies have loan modification programs that will lower your payments by changing the structure of your loan. They may reduce your interest rate or extend your loan term.
Contact the New York State Homeowner Assistance Fund
Depending on your household income and the circumstances of the foreclosure, you may be eligible for state aid. Programs through NYSHAF can allow you to pay down your loan principal, catch up on past-due payments, or pay outstanding tax and utility payments. You must be delinquent on your mortgage and either ineligible for forbearance or in a forbearance program that will expire soon.
If you have significant debt you cannot pay in addition to your mortgage, filing for bankruptcy could improve your financial situation and delay or prevent foreclosure. When you file, you get an automatic stay that prevents creditors from taking collection actions. During the bankruptcy process, you can arrange to reorganize your payments and retain your primary residence.
You must be at least 120 days behind on your mortgage for the lender to begin foreclosure proceedings. Taking action can delay this process and possibly save your home.