Help For Homeowners Facing Foreclosure

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.

Get Help! Contact 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. 

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:

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

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.