New York is a judicial foreclosure state. This means your lender must start an action in court and prove its claims in order to foreclose on your home. The plaintiff in your case may be your lender, the bank taking your monthly payments, or another entity. You and anyone else who has an interest in the property should be named as defendants. If you have missed one or more monthly payments you can expect the following:
STEP 1: Pre-Foreclosure Notice
At least 90 days before starting a foreclosure action, the lender or the mortgage servicer is required by New York law to send you by regular and certified mail an important notice (the “90-day notice”) to advise you of your default, the amount the lender claims is owed on your mortgage, and the steps you can take to avoid foreclosure. The notice must be titled in large, bold lettering as shown here:
YOU MAY BE AT RISK OF FORECLOSURE. PLEASE READ THE FOLLOWING NOTICE CAREFULLY.
Most importantly, the notice provides information on how to access free legal and counseling help and must list at least five approved housing counseling agencies for the area where the property is located. The notice also makes clear that you have the right to remain in your home until you receive a court order telling you to leave the property.
STEP 2: Foreclosure Action is filed
Unless your mortgage default is resolved, the lender may file a foreclosure action in New York State Supreme Court in the county where your property is located. You will receive a Summons and Complaint which contains the lender’s allegations.