Understanding the New York State Foreclosure Eviction Process

Understanding the New York State Foreclosure Eviction Process 1

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Foreclosure is a daunting prospect for any homeowner. The stress and uncertainty that accompany it can be overwhelming, especially when eviction is a potential outcome. In New York State, the foreclosure eviction process is subject to specific laws and procedures designed to protect both homeowners and tenants.


People in debt typically compare these two options bankruptcy vs debt settlement. This comprehensive guide aims to shed light on these processes and provide you with valuable information to navigate this challenging situation.

What is Foreclosure?

Foreclosure is a legal process that allows a lender, typically a bank, to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a homeowner fails to make mortgage payments, leading the lender to file a public default notice.

The foreclosure process in New York can take anywhere from 3 to 5 years on average, especially when the foreclosure is contested. If the borrower fails to answer the foreclosure action, the process could potentially move faster.

Foreclosure Laws in New York

Understanding the New York State Foreclosure Eviction Process

federal mortgage servicing laws rent stabilized tenants york's existing foreclosure laws

In New York State, the foreclosure process is judicial, meaning the lender must go through the court system. Under federal law, the servicer usually can’t officially begin foreclosure until you’re more than 120 days past due on payments, subject to a few exceptions.

The lender initiates the process by filing a lawsuit with the court. The homeowner is then served with a summons and complaint, and they have 20 days to respond if the documents were delivered personally, or 30 days if they were received otherwise.

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If the homeowner fails to respond, the court will declare a default judgment, allowing the lender to proceed with the sale of the home. If the homeowner contests the action, the process may take longer as the court resolves the issues.

Tenant Rights in Foreclosure

Recognizing the impact of foreclosures not only on homeowners but also on tenants, New York State law has provisions to protect the rights of tenants living in foreclosed properties.

At the start of the foreclosure action, the bank must notify all tenants that the property is the subject of a foreclosure action. After a foreclosure sale, federal law mandates that the new owner or the bank give a written 90-day notice for the tenants to move out.

The new owner, however, cannot simply call the police to have the tenants removed but must bring a summary proceeding to evict them. After the foreclosure sale and the title transfer, the new owner must notify the tenants of their rights and send 90-day notices for any eviction planned.

Eviction Actions After Foreclosure in New York State

Understanding the New York State Foreclosure Eviction Process 2

In New York State, evictions after foreclosure can be accomplished under New York Real Property Actions and Procedures Law § 713. This law provides the grounds on which a landlord can initiate an eviction action.

Once the 90-day notice period expires, if the tenant has not vacated the premises, the new owner can proceed with a formal eviction process. This involves serving the tenant with a petition and notice of petition outlining the reasons for eviction and the court date.

The tenant has the right to appear in court and contest the eviction. If the court rules in favor of the new owner, a warrant for eviction will be issued, and the sheriff or marshal will be authorized to remove the tenant from the property.

Key Takeaways

The foreclosure eviction process in New York State is a complex procedure governed by specific laws and regulations. It’s crucial for homeowners and tenants to understand their rights and obligations during this process.

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For homeowners, the key to navigating a foreclosure is to respond promptly to any legal actions and seek professional advice. Options such as loan modification, short sale, or bankruptcy might be viable alternatives to foreclosure.

For tenants, it’s important to know that a foreclosure doesn’t lead to immediate eviction. Tenants are entitled to receive notice of the foreclosure and a 90-day notice before any eviction. During this time, tenants should explore their options, which may include negotiating a new lease with the new owner, seeking legal counsel, or looking for a new place to live.

Foreclosure and eviction can be stressful, but understanding the process can help reduce some of the uncertainties. Always consult with a knowledgeable real estate attorney or housing counselor to explore all available options and decide on the best course of action.


In conclusion, comprehending the New York State foreclosure eviction process is crucial for both homeowners and tenants. This process is not immediate; it allows occupants the necessary time to find alternative housing or negotiate with the lender. It is highly regulated by laws to ensure fairness, and it involves several stages, including pre-foreclosure, foreclosure lawsuits, sale of the property, and eviction. It’s also important to note that there are resources available to help those facing this challenging situation, including housing counseling agencies and legal assistance. Ultimately, understanding this process can help mitigate the stress and uncertainty associated with foreclosure and eviction.


Understanding the New York State Foreclosure Eviction Process 3

What is foreclosure eviction in New York?

Foreclosure eviction is a legal process where a lender, usually a bank, tries to reclaim the property from the borrower because the borrower has failed to comply with the terms of the mortgage agreement, usually by not making the necessary payments.

How long does the foreclosure eviction process usually take in New York State?

The process can take anywhere from 6 months to several years, depending on several factors such as the court’s schedule, the lender’s motivation to sell, and whether or not the borrower contests the foreclosure.

What is the first step in the New York State foreclosure eviction process?

The first step is for the lender to file a lis pendens, which is a public notice that a lawsuit has been filed concerning the property. This is usually accompanied by a summons and complaint served to the borrower.

Can a borrower stop the foreclosure eviction process?

Yes, a borrower can stop the process by catching up on the missed payments, or by filing for bankruptcy. The process can also be halted if the lender did not follow the proper foreclosure procedures.

What happens after the foreclosure is completed?

After a foreclosure is completed, the lender becomes the legal owner of the property and has the right to sell it to recover the outstanding debt. If the property is occupied, the lender will need to start eviction proceedings to remove the occupants.

Can a lender immediately evict a borrower after foreclosure in New York State?

No, after a foreclosure sale, the new owner must provide a written notice to the occupants giving them 10 days to vacate the property. If the occupants refuse to leave, the new owner must file an eviction lawsuit.

What is the “Redemption Period” in New York State’s foreclosure eviction process?

The redemption period is the time during which a borrower can stop the foreclosure process by paying off the full amount of the outstanding mortgage debt, plus any additional costs. In New York, this period lasts until the property is sold at the foreclosure auction.

What are the rights of a tenant living in a foreclosed property?

Tenants have rights even during a foreclosure eviction process. According to federal law, after a foreclosure, the new owners must honor existing leases, or if the tenant has a month-to-month lease or no lease, they must provide at least 90 days’ notice before eviction.

Does foreclosure or eviction affect one’s credit score?

Yes, a foreclosure eviction can significantly lower one’s credit score, and it will remain on the credit report for seven years. This can make it harder to get new credit, buy a home, rent an apartment, or even get a job.

What are the methods to avoid foreclosure and eviction in New York?

Borrowers can avoid foreclosure eviction by negotiating a loan modification or a short sale, applying for a Deed in Lieu of Foreclosure, or filing for bankruptcy. It is advised to consult with a housing counselor or an attorney for guidance.


  • Foreclosure: This is a legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as collateral for the loan.
  • Eviction: The process by which a landlord removes a tenant from a rental property. In this context, it refers to removing a homeowner from their property following a foreclosure.
  • Acceleration: A clause within a mortgage that allows the lender to demand payment of the remaining balance of the loan for a borrower in default.
  • Default: The failure of a borrower to meet the legal obligations (or conditions) of a loan.
  • Deficiency Judgment: A judgment made against a borrower if the foreclosure sale does not cover the outstanding mortgage.
  • Delinquency: A mortgage loan becomes delinquent when the homeowner fails to make agreed-upon payments on time.
  • Foreclosure Auction: A public sale where the property is sold to the highest bidder after a homeowner has defaulted on mortgage payments.
  • Judicial Foreclosure: A type of foreclosure process in which a court handles the foreclosure proceedings after a borrower defaults on a loan.
  • Lis Pendens: A written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it.
  • Loan Modification: A change made to the terms of an existing loan by a lender as a result of a borrower’s long-term inability to repay the loan.
  • Mortgage Servicer: A company that manages daily operations of a mortgage loan including collecting payments from the borrower and pursuing foreclosure in the event of a default.
  • Non-judicial Foreclosure: A type of foreclosure that is processed without court intervention.
  • Notice of Default: A public notice filed with a court stating that the borrower is in default on their mortgage payments.
  • Redemption Period: A period of time after foreclosure during which a borrower can reclaim their property by paying the outstanding mortgage balance and fees.
  • REO (Real Estate Owned): Property owned by a lender—usually a bank—after an unsuccessful sale at a foreclosure auction.
  • Short Sale: A sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property.
  • Trustee: An individual or business that holds or manages assets for the benefit of a third party.
  • Underwater: A term used to describe a situation in which a homeowner owes more on their mortgage than the home is currently worth.
  • Sheriff’s Sale: A sale conducted by a sheriff upon order of a court after a failure to pay a judgment.
  • Pre-Foreclosure: A period of time after a homeowner defaults, but before the property goes to a foreclosure auction. During this time, the homeowner can work out an arrangement with the lender or pay the outstanding amount and fees.

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