How does foreclosure work in New York?
New York uses a judicial foreclosure process. Until the foreclosure auction itself. Because NY foreclosures average ~5 years, homeowners typically have years — from the 90-day notice through the settlement conferences to the post-judgment sale date — to sell, pay off the debt at closing, and keep the equity. After the auction there is no redemption, only a claim to surplus sale proceeds if the bid exceeded the debt.
Can you catch up and keep your home?
The homeowner may reinstate (pay arrears, fees, and costs — not the full balance) at any time before entry of final judgment, and the case is resolved. Even after judgment but before sale, RPAPL §1341 lets the borrower pay the amount due plus costs into court to stay the sale (best suited to non-fully-accelerated situations); paying the full judgment stops the sale outright. The standard mortgage contract's reinstatement clause also applies.
Until when can you sell and keep your equity?
Until the foreclosure auction itself. Because NY foreclosures average ~5 years, homeowners typically have years — from the 90-day notice through the settlement conferences to the post-judgment sale date — to sell, pay off the debt at closing, and keep the equity. After the auction there is no redemption, only a claim to surplus sale proceeds if the bid exceeded the debt. See your exact dates with the free New York Foreclosure Deadline Calculator.
The honest math on a New York foreclosure
Every day you carry the loan, arrears, fees, and interest grow. A traditional listing takes weeks to market and 30–45 more days for a financed buyer to close — time you may not have before the sale date.
A cash sale that closes before the sale date lets you walk away with your equity instead of losing it at auction. Talk to a free HUD counselor too — you may have options beyond selling.