The easiest way to handle NYC foreclosures is to contact your lender as soon as you are unable to make your payments on time. Lenders want the borrowers to keep their homes because foreclosure is an expensive process on which most lenders end up losing money.

Lenders therefore have an interest in exploring every possible option in the New York foreclosure process, including forbearance, partial claim, payment modification and payment suspension. However, the fewer payments you are behind, the more options will be open to you.

There are three key actions to take in the New York foreclosure recovery process:

1. Read and respond to any correspondence from your lender. These notices will contain important information on the foreclosure recovery process in New York and pending legal action.
2. Raise money to make a missed payment. You may be able to sell assets such as a second car or jewelry, or a household member could take a second job.
3. Avoid foreclosure recovery scams. Many companies claim to be able to stop your foreclosure by charging you for information you could get for free such as foreclosure listings. New York scams may also involve getting you to sign over the title to your house.

Action Steps
The best contacts and resources to help you get it done

Know how New York foreclosure laws will affect you

Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of foreclosure laws in New York. You should also read your loan documents to know what your lender can do if you can't make your payments.

I recommend: ForeclosureS.com provides the contact information for the Attorney General’s Office in New York and links to specific legislation regarding foreclosure in New York. Foreclosurelaw.org offers a summary of New York foreclosure laws and a glossary of common foreclosure terminology.

Get assistance with New York foreclosure recovery information

You may need a New York foreclosure specialist to help you understand your options, assist you in organizing your finances and negotiate with your lender if needed.

I recommend: The Department of Housing and Urban Development provides contact information for approved housing counselors in New York that are available for free or very low cost. Consumer Credit Counseling Service offers an online tutorial through its CredabilityU website to help you keep your home, as well as many other financial tips.

Retain one of the many foreclosure attorneys in New York

You may need one of the available New York foreclosure lawyers to protect your interests, especially if you need to sign documents. If your regular attorney does not handle New York foreclosure law, he or she may be able to make a referral.

I recommend: Richard Croak in Albany specializes in real estate law, especially foreclosures. Daniel F. Spitalnic is located in Great Neck and includes New York commercial foreclosure in its areas of practice.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate', upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider refinancing in your New York foreclosure process if you have some equity in your home. You will normally need at least 10% equity for a reasonable chance at refinancing and your odds get better with more equity. However, you don't want to make the common mistake of simply taking out a new loan that will be just as difficult to repay as the original mortgage.
• •  Ask to speak with a manager when you contact your mortgage company as part of your New York foreclosure recovery process. You will need to have some basic information ready, including your loan number, household expenses and recent pay stubs. Be prepared to provide a brief, honest account of your financial circumstances and take notes, especially the contact information of the person to whom you are speaking.