New York is a judicial-foreclosure state. No Long Island lender can take your home without filing a lawsuit, serving you, attending a court-supervised settlement conference, and obtaining a judgment. That process creates deadlines — and every deadline is an opportunity to change the outcome. This guide explains the statutes that govern foreclosure in Nassau and Suffolk Counties and what each stage means in practice.
Foreclosure in New York runs under Article 13 of the Real Property Actions and Proceedings Law (RPAPL), supported by CPLR 3408 for settlement conferences and RPAPL 1371 for post-sale deficiency claims. The lender is the plaintiff; the homeowner is the defendant; a judge supervises every step.
Because it is judicial, the timeline is long. Contested Long Island cases regularly run two to four years from the first missed payment to a referee's auction. That length is the homeowner's principal asset — it creates time to modify, sell short, or negotiate a deed in lieu on terms far better than an auction produces.
Nothing on this page is legal advice. It is a plain-language map of the process so you know which stage you are in and what options are still open. Consult a New York attorney and a HUD-approved housing counselor about your specific case.
Before filing, the servicer must send a 90-day pre-foreclosure notice by certified and first-class mail, in a specific format, listing at least five HUD-approved housing counselors serving your county. A defective 1304 notice is one of the most common grounds for dismissal in New York.
Within three business days of mailing the 1304 notice, the lender must file borrower and loan information with the New York State Department of Financial Services. Failure to file is another recognized defense.
The lender records a notice of pendency with the Nassau County Clerk in Mineola or the Suffolk County Clerk in Riverhead. It clouds title and is the public start of the case — but it does not transfer ownership. You still own and may still sell the home.
For owner-occupied, one-to-four family homes with a home loan, the court must hold a settlement conference, generally within 60 days of proof of service. Both parties must negotiate in good faith. Modification, short sale and deed in lieu are all valid outcomes here.
If the case is not resolved, the court grants judgment, fixes the amount owed, and appoints a referee to conduct and close the auction. Notice of sale must be published in a designated legal newspaper.
If the sale brings less than the judgment, the lender may move for a deficiency judgment within 90 days of the deed delivery, measured against the higher of the sale price or fair market value. Miss that window and the debt is satisfied by the sale.
Servicers typically refer a loan to foreclosure counsel after 90 to 120 days of delinquency. The RPAPL 1304 notice must arrive at least 90 days before the lawsuit is filed, in 14-point type, with the statutory language and the counselor list. Keep the envelope — the mailing method and date matter if the notice is later challenged.
This 90-day period is the cheapest time to solve the problem. Loss-mitigation applications submitted here get evaluated before litigation costs are added to your balance, and a short sale listed now has the widest possible runway.
Once the summons, complaint and notice of pendency are filed with the county clerk, you generally have 20 days to answer if served personally, or 30 days if served by another permitted method. Filing an answer preserves your defenses — including standing, defective 1304 notice, and failure to file under 1306. Defaulting waives most of them.
The lis pendens clouds title but does not stop a sale. Long Island homeowners sell during a pending foreclosure regularly; the payoff simply has to satisfy the lender at closing, or the lender must approve a short payoff.
Both counties run dedicated foreclosure settlement conference parts. Appear at every conference — non-appearance is treated harshly and can end the negotiation track. Bring the full financial package: pay stubs, tax returns, bank statements, a hardship letter and a budget. Courts can and do sanction servicers that fail to negotiate in good faith.
If a modification is not viable because the payment cannot be made sustainable, say so and pivot to a short sale or deed in lieu at the conference. Judges generally support a negotiated exit over a multi-year contested case.
The judgment fixes the debt and appoints a referee. At the auction the plaintiff sets an upset price — the minimum acceptable bid, typically the judgment plus advanced taxes, insurance and fees. Third-party bidders must produce a 10% certified-funds deposit immediately and close within roughly 30 days.
When no bid clears the upset price, the lender credit-bids and takes the referee's deed. The property becomes REO and is later relisted on the OneKey® MLS through a designated broker.
If the auction produces more than the judgment, the excess is surplus money deposited with the court, and the former owner may petition for it. Many Long Island homeowners never claim surplus funds they are entitled to.
Possession is handled separately. The purchaser must bring a holdover proceeding; self-help lockouts are unlawful in New York. Where the sale fell short, the lender's deficiency motion under RPAPL 1371 must be made within 90 days of the deed delivery — a deadline worth calendaring.
New York's Home Equity Theft Prevention Act regulates purchases from homeowners in default, and the Distressed Property Consultant law bars upfront fees for foreclosure-rescue services. The Attorney General's Homeowner Protection Program funds free legal services and counseling statewide, and both Nassau and Suffolk have legal-services organizations that appear in the foreclosure parts.
Servicemembers have additional protection under the federal Servicemembers Civil Relief Act, which can stay a foreclosure and cap interest during active duty.
The same timeline, told from the buyer's perspective.
Options review, modification, short sale and deed in lieu.
Guided intake — address, county, stage and best contact method.
What a filed notice of pendency does and does not mean.
How a short sale resolves a pending foreclosure.
Live OneKey® MLS distressed inventory.
Last reviewed May 27, 2026 by Kristopher J. Pilles, Licensed NY Real Estate Broker (CCIM, CDPE, MBA), East End Luxury Ltd. This page is general information about New York foreclosure and short-sale practice, not legal, tax, or financial advice. Consult a New York attorney, a CPA, or a HUD-approved housing counselor before acting on your own situation.
Confidential, no-obligation consultation with East End Luxury Ltd. — CCIM, CDPE, MBA.