New York Mortgage Help and Foreclosure Prevention
New York has some of the strongest homeowner protections in the country, and the foreclosure process here moves more slowly than almost anywhere else — the average foreclosure in New York takes over five years from first filing to completion. That's not a reason to delay, but it does mean there is substantially more time to act than most homeowners realize. The state has built a layered network of free counseling, legal services, and court-mandated settlement conferences, listed below, that are designed to give homeowners a genuine opportunity to work out an alternative before losing their home.
All of the resources below are free to homeowners, and none require upfront fees. Anyone charging money to help you apply for these programs or negotiate with your lender is almost certainly running a scam.
Start here: The Homeowner Protection Program (HOPP)
The Homeowner Protection Program is New York's central statewide resource for homeowners facing foreclosure or struggling with mortgage payments. Operated by the New York State Attorney General's Office, HOPP is a network of more than 90 housing counseling and legal services organizations spread across every county in the state. Services are free regardless of income.
HOPP representatives can connect you with a local housing counselor or a legal aid attorney depending on what your situation requires. Counselors help you understand your options, organize documentation, and communicate with your servicer before or during a foreclosure case. Legal services providers can represent you in court proceedings, including the mandatory settlement conference (described below), if your case reaches that stage.
To reach HOPP, call 1-855-466-3456, Monday through Friday, 9 a.m. to 5 p.m. You can also start online at https://homeownerhelpny.org/, which provides guidance on the foreclosure process, a scam-identification tool, and a way to find local help. The service covers seniors, reverse mortgage borrowers, and homeowners dealing with property tax issues in addition to conventional mortgage defaults.
What New York law requires before foreclosure begins
Before a lender can initiate foreclosure on a primary residence in New York, two things must happen.
First, under RPAPL 1304, the lender must send the homeowner a pre-foreclosure notice at least 90 days before filing any legal action. This notice must be sent by both certified and first-class mail, must list HUD-approved housing counselors serving the homeowner's area, and must spell out how much is needed to reinstate the loan. This 90-day window is your earliest and best opportunity to contact a counselor and begin exploring options.
Second, once the lender files the foreclosure complaint and serves the homeowner, the court must schedule a mandatory settlement conference under CPLR 3408 within 60 days. This applies to all residential foreclosures on primary residences — it is not limited to subprime or high-cost loans. Both parties are legally required to negotiate in good faith at this conference. The lender must appear with a representative who has full authority to settle the case, and must come prepared with loan details, reinstatement amounts, and loss mitigation options. If a homeowner appears without an attorney, the court will determine whether they qualify for appointed counsel at no cost.
No party may be charged fees for appearing at or participating in the settlement conference. Details on the settlement conference process are at https://www.dfs.ny.gov/.
New York Department of Financial Services
The Department of Financial Services (DFS) provides information and oversight for homeowners at every stage of the mortgage process. Its consumer help page for homeowners explains mortgage rights, details the settlement conference process, and helps homeowners identify whether their servicer is complying with New York law.
If you believe your mortgage servicer has violated state rules — failed to send required notices, refused to negotiate in good faith at a settlement conference, or misapplied payments — DFS is the agency that regulates them and accepts complaints. Website: https://www.dfs.ny.gov/consumers/help_for_homeowners.
Free HUD-approved housing counseling
Dozens of nonprofit agencies across New York are certified by the U.S. Department of Housing and Urban Development to provide free foreclosure prevention counseling. These counselors are independent of your lender, trained in loss mitigation options, and familiar with servicer practices in New York.
They can help you prepare the financial documents a servicer requires for a hardship review, write a hardship letter, review your mortgage for errors, and represent your interests in direct negotiations before a foreclosure case is filed. Finding a counselor early — before you've missed several payments and before a case is filed — significantly expands your options. The HOPP hotline (1-855-466-3456) connects you with local counselors, as does the HUD national directory at https://www.hud.gov/states/new-york.. ].
The mandatory settlement conference in practice
Under New York's CPLR 3408, once a lender files a residential foreclosure action on a primary residence and serves the homeowner, the court must hold a settlement conference within 60 days. This is not optional for either side.
The conference takes place in a special Foreclosure Settlement Conference Part of the court. A court-appointed referee or judge leads the session. The purpose is to determine whether a mutually agreeable resolution exists — a loan modification, repayment plan, short sale, deed in lieu, or other arrangement — and to give both parties a structured opportunity to reach one. Multiple conferences are common; the case stays in this part until either a resolution is reached or the court determines that good-faith negotiation has been exhausted.
If the lender fails to negotiate in good faith, the court has authority to impose sanctions including reduced interest, costs, and attorney's fees. This creates meaningful accountability on the lender's side.
For homeowners who appear without an attorney, the court will immediately determine whether they qualify for appointed counsel. Legal representation at settlement conferences is also available through the HOPP network. Free legal aid organizations can be found through the New York free legal aid page.
Deed theft and foreclosure rescue scams
New York's Attorney General specifically runs a "Protect Our Homes" initiative focused on deed-theft scams — schemes where bad actors trick distressed homeowners into signing over the deed to their home, then try to evict the former owner and sell the property. These scams disproportionately target elderly homeowners, disabled homeowners, and owners who are behind on taxes or carrying liens for unpaid city charges.
Warning signs include unsolicited offers to "help" with your mortgage or stop a foreclosure, requests for upfront fees before any service is provided, pressure to sign documents quickly without legal review, and requests to sign over ownership "temporarily." Legitimate HOPP counselors and legal aid attorneys do not charge fees. Anyone claiming to be able to stop your foreclosure for a fee — or requesting that you transfer your deed — should be reported to the Attorney General at 1-800-771-7755 or via the AG complaint form at https://ag.ny.gov/.
SONYMA and affordable homebuying programs
The State of New York Mortgage Agency (SONYMA), administered through the state's Homes and Community Renewal office, provides below-market fixed-rate mortgages and down payment assistance for first-time homebuyers and income-eligible purchasers. Programs include the Achieving the Dream mortgage for lower-income borrowers, the Low Interest Rate program, and the Homes for Veterans program offering additional benefits to veterans and active service members.
SONYMA loans are issued through participating lenders statewide, not directly from the state. These programs are designed for buyers entering the housing market, not primarily for homeowners in foreclosure. If you are currently a homeowner behind on payments, the HOPP network and DFS resources above are the appropriate starting points. For information on SONYMA homebuying programs at https://hcr.ny.gov/sonyma.
Community Action agencies and local programs
Local community action agencies across New York can provide emergency assistance with housing costs, including mortgage payments, for income-eligible residents experiencing short-term hardship. These agencies draw on ESG funds, state grant money, and other resources. Find community action emergency assistance in your area at New York community action agencies page.
In central and western New York, PathStone (formerly PathStone) provides free foreclosure prevention counseling and mortgage modification assistance, including direct negotiation with lenders. More on PathStone foreclosure prevention.
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