Behind on Mortgage Payments in New York? What to Do at 1, 3 and 6 Months

Falling behind on mortgage payments is stressful, but it does not mean you will lose your home. In New York, foreclosure is a long court process, and you have more options the earlier you act.

This guide explains what happens when you are 1, 3 and 6 months behind on your mortgage in New York, and what you can do at each stage.

First: do not ignore it

The most common mistake homeowners make is waiting. Calls and letters from your servicer can feel overwhelming, but every month you wait adds late fees and interest to what you owe, and closes off some options.

Open every letter. Keep a folder with your mortgage statements, letters from your servicer and notes from every phone call, including the date, the person’s name and what they said.

1 month behind on your mortgage

What happens: Your servicer will usually charge a late fee once the grace period ends, often about 15 days after the due date. You will get calls and letters. Your servicer may report the late payment to the credit bureaus once you are 30 days late.

What to do:

• Call your servicer and explain what happened. Ask what options are available.
• If the problem is short-term, ask about a repayment plan, which spreads the missed amount over several months.
• Make a realistic budget so you know what you can afford going forward.

At this stage, one missed payment is usually fixable.

2 to 3 months behind on your mortgage

What happens: The late fees add up. Your servicer is required to reach out about loss mitigation options. If you are 3 months behind, you may receive a 90-day pre-foreclosure notice. In New York, lenders must send this notice at least 90 days before filing a foreclosure case on a home loan, and it must include a list of at least five housing counseling agencies (RPAPL § 1304).

What to do:

• Apply for loss mitigation. Ask your servicer for a complete loss mitigation application and send it back quickly with every document requested.
• Ask about forbearance. If your hardship is temporary, such as a job loss or medical bills, forbearance can pause or reduce payments for a set time.
• Ask about a loan modification. A modification changes your loan terms, such as the interest rate or length, to lower the payment.
• Call a housing counselor. HUD-approved counselors and nonprofits like Abraxas Foundation help for free.

This is often the best window to fix the problem before court costs and legal fees are added.

4 to 6 months behind on your mortgage

What happens: Your lender may file a foreclosure case in the New York State Supreme Court. You will be served with a summons and complaint. You generally have 20 days to answer if the papers are handed to you personally, or 30 days if they were delivered another way.

What to do:

• Do not ignore the court papers. Get help from a free legal services provider or an attorney right away.
• Go to your settlement conference. For most owner-occupied homes, the court must schedule a mandatory settlement conference where your lender must negotiate in good faith. Read our guide to the foreclosure settlement conference.
• Keep applying for a modification. You can still be approved after the case is filed.

6 months or more behind

What happens: The case moves through the court. If no agreement is reached, the lender may ask the court for a judgment of foreclosure and sale, and the home may be scheduled for auction.

What to do:

• Know you still have time. New York foreclosures often take years, not months. See our New York foreclosure process timeline.
• Consider a short sale. If you cannot afford to keep the home, a short sale lets you sell for less than you owe with the lender’s approval and avoid an auction. Compare your choices in Short Sale vs. Foreclosure in New York.
• Watch out for scams. Homeowners who are far behind are targeted by people promising to “save” the home for a fee. Learn the warning signs in our guide to foreclosure rescue scams and deed theft.

Can you refinance if you are behind on your mortgage?

It is very hard. Most lenders will not approve a new loan while your current mortgage is past due. A loan modification with your current lender is usually the more realistic way to lower your payment.

How many months can you fall behind before foreclosure?

Under federal mortgage servicing rules, servicers generally cannot start a foreclosure until you are more than 120 days behind. In New York, the lender must also send the 90-day notice before filing. Once filed, the case usually takes a long time. But do not wait: your options are best in the first few months.

Behind on mortgage payments? Get free help today

Abraxas Foundation is a New York nonprofit that helps homeowners who are behind on mortgage payments understand their options, apply for help and avoid foreclosure. There is never a fee.

Call (929) 346-5734 or contact us online for a free, confidential review.

Helpful official resources: NY Courts CourtHelp: Foreclosure and NY DFS Foreclosure Consumer Bill of Rights.

This article is general information, not legal or financial advice. Speak with a housing counselor or attorney about your situation.