Can You Stop a Foreclosure Auction in New York?

If a foreclosure auction date has been set for your home, you may feel like it is too late. It often is not. In New York, a foreclosure sale can sometimes be stopped or postponed right up until the auction is complete. But once the sale happens, you lose the home, so you need to act quickly.

First, find out when the auction is

After the court grants a judgment of foreclosure and sale, the lender must publish a notice of the auction in a newspaper at least 30 days before the sale. If you filed an Answer or a Notice of Appearance in your case, you should also get notice. If you never responded to the case, the lender does not have to tell you directly, so check with the court clerk or look up your case.

Write down the exact date, time and courthouse. Every option below depends on acting before that moment.

Ways a foreclosure auction can be stopped or delayed

1. Pay what you owe

You can stop the sale at any time before it happens by paying the full amount owed under the judgment. This is called the right of redemption. For most families this means refinancing or getting help from relatives, and it has to be arranged before the auction.

2. Ask the court to delay the sale

You can ask the judge to stop or postpone the sale by filing papers called an order to show cause. The court looks for a good reason. Examples include:

• You have the money to pay what you owe
• You are in the middle of refinancing
• You have a buyer and an offer for the home
• You have filed for bankruptcy

Bring proof, such as a refinance commitment letter or a signed purchase contract. A Court Help Center or a free legal services lawyer can help you prepare the papers.

3. Keep negotiating with your lender

Until the home is sold, you can still contact the lender about a loan modification, especially if your income has changed. Lenders sometimes agree to postpone the auction while they review a complete application or finalize an approved short sale. Get any postponement in writing.

4. Ask to reopen a default judgment

If you never answered the foreclosure lawsuit and the judgment was entered against you by default, you may be able to ask the court to vacate the default and let you file an Answer, if you have defenses. Talk to a lawyer about this right away.

5. Bankruptcy

Filing for bankruptcy usually puts an automatic, temporary stop on a foreclosure sale. But bankruptcy has serious long-term effects, and repeated filings may not stop a sale at all. Speak with a bankruptcy attorney before you decide, ideally well before the auction date.

A short sale can be a way out

If keeping the home is not realistic, a short sale lets you sell the home before the auction, even if it is worth less than you owe, with your lender’s approval. It is usually better for your credit than a completed foreclosure, and you leave on your own schedule.

Homeowners who complete a short sale may qualify for our short sale relocation grant to help cover moving costs. Learn more about short sale vs. foreclosure in New York.

If the auction is days away

1. Call a free legal services provider today. New York’s Homeowner Protection Program can connect you at (855) 466-3456.
2. Contact your lender’s attorney, whose name is on the court papers, and ask in writing whether the sale can be postponed.
3. Visit the Court Help Center at your county courthouse to ask about filing an order to show cause.
4. Do not pay anyone who promises to stop the sale for a fee. Read our guide to foreclosure rescue scams.

If the auction already happened

Once the sale is complete, the home belongs to the buyer. You may still be entitled to surplus money if the home sold for more than you owed, and the new owner must follow a legal process to have you move out. Read what happens when your house is foreclosed in New York.

Need to stop a foreclosure auction? Get free help

Abraxas Foundation is a New York nonprofit that helps homeowners understand their options and avoid foreclosure. We meet you at your home, our help is completely free, and we can refer you to free legal assistance and HUD-approved housing counselors.

Call (929) 346-5734 or tap the button below 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.