In New York State, mortgage bankers and banking organizations that offer residential mortgage services are required to provide residential mortgage applicants with information on their rights and protections pursuant to Chapter 566 of the Laws of 2024.

• The pamphlet, “What Mortgage Applicants Need to Know (PDF, English version) is also available in other languages.

Mortgage applicants are encouraged to review this information carefully to understand their rights during the mortgage application process.

Vacant and Abandoned Properties

• Learn what to do about abandoned or vacant "zombie" property or report an abandoned or vacant property that is not being maintained via our Consumer Complaint form.
• Property owners can learn more about the requirements for inspecting, securing, and maintaining vacant and abandoned properties in New York.

Watch Out for Scams and Fraud

Learn more about "foreclosure rescue" scams, deed and home equity theft, home repair scams, charity scams and other home and mortgage-related fraud as well as how to avoid other dangerous or predatory loans in our scams, frauds, and cyber-crime section.

Mortgage Loan Originators List (NMLS) for Consumers

NMLS Consumer Access is a free service for consumers to confirm that the financial-services company or professional with whom they wish to conduct business is authorized to do business in their state.

• NMLS Consumer Access

If you are having trouble making your mortgage payments, have already fallen behind or are in default or foreclosure, you may feel scared, ashamed or overwhelmed. It is very important that you act quickly to communicate your situation clearly to your lender and reach out for the help you need. The longer you wait, the fewer options you may have to save your home or avoid foreclosure. Here are some tips on the steps to take if you find yourself in this situation:

Contact Your Lender or Loan Servicer Immediately

It is crucial that you contact your lender or loan servicer as soon as you realize that you are unable to make a payment. This is a crucial first step in addressing your situation and identifying possible solutions. It is very important that you respond to mail and phone calls from your lender. If your lender does not hear from you, they are more likely to start legal action leading to foreclosure. Provide any information requested by your lender or servicer quickly and keep records and copies of everything.

Know What May Happen When You Fall Behind

When you fall behind on your mortgage payments, you can expect most lenders to react quickly. Below is a general timeline of what may occur following your first late payment and ending in foreclosure.

• See a Timeline

Know Your Options

Your lender may be able to offer you an alternative to foreclosure.

If you are having trouble making your mortgage payments, there are a variety of mortgage programs available to help you keep your home. You may be eligible to permanently modify your mortgage to make your payments and terms more manageable. If you do not qualify for a permanent modification and have only missed a few payments, you may qualify for a temporary solution. However, depending on your circumstances, you may not be able to keep your home. In this case, a short sale or deed-in-lieu of foreclosure may be a better alternative than foreclosure. 

• Here are some of the options that may be available to you.

Get Help! Find a Not-for-Profit Housing Counselor

Housing counselors that handle foreclosure-related issues can give you advice on your options and resources at little or no cost. They may also be able to negotiate with your lender for free and help you find free legal services in your area.

Housing counseling resources for New Yorkers include:

• New York’s Homeowner Protection Program (HOPP), which connects with housing counselors and legal services at no cost. Call the HOPP hotline at (855) 466-3456 or visit homeownerhelpny.com.
• You can find a list of approved non-profit housing counselors by county here on the DFS website.
• 24-Hour assistance is available toll-free on the HOPE NOW hotline at 888-995-HOPE (888-995-4673). HOPE NOW is an alliance of HUD approved counseling agents, servicers, and investors that provide free assistance.
• If you live in New York City, you can also call 311.

If you are in a foreclosure court case, you should consult an attorney.

Know Your Rights!

The Residential Foreclosure Actions Consumer Bill of Rights provides guidance to homeowners facing foreclosure in New York. A foreclosure is a lawsuit, and homeowners should seek assistance from an attorney or housing counselor in exploring potential legal defenses to the suit. 

• Homeowners should also know their general rights and obligations.

The current property owner, the tenants, the foreclosing party (usually a bank), and the new owner of a property going through foreclosure all have certain rights and obligations.

• Tenants Rights in Foreclosed Properties

Seek Legal Assistance

Contact a lawyer and review your mortgage documents. Make sure your loan is not in violation of any laws. If you do not have an attorney, the New York State Bar Association may be able to refer you to an appropriate attorney for your situation.

If you cannot afford a private attorney, resources for free or low-cost legal assistance include:

• New York’s Homeowner Protection Program (HOPP), which connects with housing counselors and legal services at no cost. Call the HOPP hotline at (855) 466-3456 or visit homeownerhelpny.com.
• The New York State Bar Association’s Lawyer Referral and Information Service.
• The Legal Service Corporation website.
• LawHelp.org, an online directory of free legal service providers in New York.

If you are in a foreclosure court case, you should consult an attorney.

Mandatory Settlement Conferences

Currently, New York's Civil Procedure Laws & Rules § 3408 ("Rule 3408") requires parties to a residential foreclosure action to "negotiate in good faith" to reach a mutually agreeable resolution at a mandatory settlement conference, which is to take place within sixty days of the filing of the summons and complaint.

• Learn more about mandatory settlement conferences in New York

Watch Out for Scams

Solutions that sound too good to be true usually are!

• BEWARE of anyone who asks for an upfront fee in exchange for getting you a loan modification, saving your home from default or stopping a foreclosure or tax sale. New York law prohibits the collection of such fees in most cases.
• BEWARE of anyone who says they can “save” your home if you sign or transfer the deed to your house over to them so you can catch up on your mortgage payments or refinance your loan.
• NEVER submit your mortgage payments to anyone other than your mortgage company without their approval.

File A Complaint

Learn how how to file a complaint against a regulated entity. Use our Homeowner's Foreclosure Complaint Checklist to make sure you collect and submit the right additional supporting documents to the Department with your complaint.

Disasters and other unexpected losses can occur at any time. It is important for homeowners and renters to make sure they understand their insurance. It is up to you to purchase the policy that best meets your needs.

When shopping for insurance, get references and talk with relatives and friends about their insurance experiences. Examine coverage and costs by comparing the offers of more than one insurance agent or broker. It is also important to review your existing insurance policies periodically to make sure they provide adequate coverage. While the majority of insurers use fairly standard forms to compile their homeowner policies, there can be differences.

Learn more about:

• Basic Coverage and Adding Coverage
• Choosing a Policy
• Force-Placed Insurance
• Cancellations and Nonrenewals
• Deciding How Much Insurance You Need
• Problems Obtaining Insurance
• Flood Insurance
• Understanding What Affects Cost
• Shopping for Insurance
• Managing and Mitigating Losses

NMLS Mortgage Loan Originators List

NMLS Consumer Access is a free service for consumers to confirm that the financial-services company or professional with whom they wish to conduct business is authorized to conduct business in their state.

• NMLS Consumer Access

Learn the definition of a high-cost home loan, high-cost home loans and veterans and residual Incomes for the Northeast Region,, subprime home loans and interest rate thresholds for mortgage loans in New York.

• More about High Cost & Subprime Loans

What is a Reverse Mortgage

A reverse mortgage is a type of mortgage loan that is generally available to homeowners 60 years of age or older that permits you to convert some of the equity in your home into cash while you retain ownership.

In New York, there are two types of reverse mortgage loans available to senior borrowers. The first, a Home Equity Conversion Mortgage, often referred to as a HECM, is a reverse mortgage loan that is made in accordance with the requirements of the Home Equity Conversion Mortgage program operated by the Federal Housing Administration. HECMs are the only reverse mortgages insured by the Federal Government.

The second, referred to as a proprietary reverse mortgage, is a mortgage loan that is made in accordance with the requirements of New York State Law. A reverse cooperative apartment unit loan is a proprietary reverse mortgage secured by a borrower’s interest or shares in a cooperative housing entity and, as such, is not affiliated with the HECM product or the Federal Government at all. Instead, it is governed by New York State laws and rules, most notably, New York Banking Law Section 6-0*2.

These loans are not right for everyone. Consult a lawyer, financial advisor or housing counselor before you make any decisions with regard to these loans.

• Reverse Mortgages: What You Need to Know

Generally, mortgage escrow accounts are used to collect and pay property taxes and insurance payments on a home. Lenders want to make sure that your property is insured and that the taxes are paid on time, reducing the risk to the bank that you will default on the loan or incur liens on the property. The amount needed to cover these payments is added onto your mortgage payment each month.

• Learn more about mortgage escrow

Title Insurance

A title search is a detailed examination of historical public records including deeds, court records, property and name indexes and other public documents. Title insurance protects the owner of property and the mortgage lender against future claims for any unknown defects in the title to the property at the time of sale. Claims can arise as a result of fraud, forgery, unpaid real property taxes, judgments, liens, or other encumbrances that were not discovered during a search of the property’s title history conducted before the sale.

• Learn more about title insurance

Renter's Insurance

If you are a renter residing in New York, by law the building owner is required to maintain insurance on the dwelling you rent. This means that the building itself is insured, and should something happen to this structure as the result of fire, water damage, etc., the building owner is entitled to file a claim. However, the landlord's insurance does not protect you as a renter. If this same fire or water damage should ruin your sofa, clothes or other personal items, you are not protected against the loss of these items unless you buy a renters insurance policy. Moreover, if someone becomes injured while on the premises you rent, you could potentially be held liable for any medical and hospital expenses.

• Renters should consider purchasing renters insurance, also known as "tenants insurance."

Rent-to-Own and Land Installment Contracts

New Yorkers should use caution before entering into any rent-to-own or any other form of alternative home purchase finance agreement. DFS is investigating whether alternative home purchase agreements, such as rent-to-own, lease-to-own or land installment contracts, being offered in New York constitute unlicensed, predatory mortgage lending. These alternative home purchase agreements often are being marketed to financially distressed consumers, promising a path to homeownership, but putting consumers at risk.

New York residents should know that lease-to-own, rent-to-own and land installment contracts may violate New York laws and regulations regarding fair lending, mortgage protections, interest rates, habitability, property condition and/or real property disclosures. 

• Learn more about Rent-to-Own and Land Installment Contracts

It’s important to take steps to help ensure that you’re ready for the potential damage that severe storms can cause. By taking the time to do things like check that your insurance policies are in order and create an inventory of your personal belongings, you’ll be better prepared.

That’s why the Department of Financial Services is outlining a list of storm-preparedness tips, including steps New Yorkers should take to help make certain their homes are storm ready and their property is adequately insured.

• General Storm Preparedness Tips

Need Help Now?

Call the DFS Disaster Hotline: (800) 339-1759

DFS works with banks and financial institutions to eliminate excessive fees, prevent foreclosures, and encourage loan and mortgage forbearance for those affected by disasters. We also work to help expedite endorsement of insurance claims checks by banks to homeowners in urgent need of disaster-related repairs. If you are unable to close on a loan or mortgage due to severe weather, we may also be able to help you avoid adverse consequences, such as late fees for changes in the terms.

DFS can answer questions about agents, brokers and adjustors, the claims process (including hurricane and wind deductibles), policy cancellation, non-renewal, and coverage for additional living expenses (which you may be entitled to if you are displaced after a disaster). If your business has been affected by a disaster, we can also answer questions about coverage, business interruption insurance and off-premises service interruption coverage.

• Disaster and Flood Recovery Resources

• Learn how how to file a complaint against a regulated entity.
• Use our Homeowner's Foreclosure Complaint Checklist to make sure you collect and submit the right additional supporting documents to the Department with your complaint.

If you are unable to find the answer to your questions here, Check our Homeowner and Tenants FAQs or contact us for further assistance.