Residential Housing Complex

What can stop a foreclosure of your home?

As a homeowner facing a foreclosure, there are a few options you have to stop a foreclosure:

  • Repay the outstanding debt

  • File for Chapter 7 or Chapter 13 Bankruptcy

  • Contact the lender and request a mortgage modification

Many people use one or more of the above options to avoid a foreclosure on their home.  The best solution depends on your individual circumstances.


What happens when you fall behind on your mortgage?


The average foreclosure in New York state currently takes about 445 days from the date of the first missed payment to the sale of the home.  When you fall behind on your mortgage payments, the below summary is a time line of what will  likely occur.


Day 1-15

A mortgage payment is missed.

Day 16-30

The loan servicer will contact you and charge a late fee.

Day 30-60+

The loan servicer must send you a pre-foreclosure notice at least 90 days before beginning a foreclosure action.  This 90 day period allows you to try to find an alternative solution with the lender.

This is a good time to negotiate a mortgage modification, because a mortgage modification would stop the foreclosure proceedings and spare the loan servicer of the costs and time associated with foreclosing on a home.

Day 45-60

The loan servicer will send a letter declaring that the terms of the mortgage have been violated, and you will be given 30 days to pay the delinquent amount and the late fee.

Day 90+

The loan servicer will begin the process of legal action for foreclosure.  These proceedings can take 7-9 months.  Once a summons and complaint has been served on you and the lender files proof of service with the court, the court is required to schedule a settlement conference within 60 days.  This is an opportunity to meet face to face with your lender to reach a resolution in the case.

You must respond to the summons and complaint, and the court will rule on whether a foreclosure can proceed based on the evidence submitted to the court.  If the court rules against the borrower a foreclosure sale is scheduled, which is usually 4 months after the court ruling.


Once the sale is complete, you have no right to redemption and lose your house.

What is a Mortgage Modification?

A Mortgage modification is a process where the terms of a mortgage are modified from the original terms of the contract agreed to by the lender and borrower.

Many clients initiate a mortgage modification when they are late on a mortgage payment and need a way to restart their mortgage with a monthly payment they can better afford.

Some of the advantages of a mortgage modification are:

  • Lower your mortgage payments

  • Lower interest rates

  • Forebear some of the principal balance

  • Extend the length of the loan

  • Change the interest rate from a variable to a fixed

  • Avoid mortgage foreclosure

The modification process typically requires hours of phone conversations with the mortgage company, multiple application submissions, and negotiations regarding the reason you are requesting a mortgage modification.  An experienced attorney can help you submit your application and present your case favorably to get you the best possible outcome.

We have helped families like yours to negotiate lower mortgage payments that they can afford.  We have experience working with all the major Mortgage companies in the New York & New Jersey area.  We know how to approach the modification process to get the best possible outcome for you.

Contact us to find out about how we can help you get a Loan Modification.


When will a bank start a foreclosure process?

  • Normally it takes several missed mortgage payments before a bank will start the foreclosure process and in some cases several years.  To stop a foreclosure, you must pay the missing payments.  When you are late by more than one mortgage payment, you should consider a mortgage modification to reset your payments.

When will my late mortgage payment show up on my Credit Score?

  • Mortgage companies aren't allowed to report your late payment until it is past the 30 day period.  After 30 days It will start to seriously affect your credit score.