Facing Foreclosure? You Have Options.

New York has one of the longest foreclosure timelines in the country. The full process, from your first missed payment to a forced sale at auction, often takes 18 months to 3 years. The timeline depends on whether the foreclosure is contested, current court backlogs, and your lender's approach. This extended timeline means most homeowners have meaningful time to explore options, including selling the home, pursuing a short sale, applying for loan modification, or seeking guidance from a HUD certified counselor. Acting earlier in the process typically leaves more options on the table.

Yes, in most cases. As long as the foreclosure auction has not happened, you generally retain the right to sell. The proceeds first go to paying off your mortgage and any related liens. If the sale price covers what you owe, you sell like any other homeowner. If it does not, you may need to pursue a short sale, which requires your lender's approval to accept less than the full balance. Patroy can review your specific situation, run the numbers, and help you understand whether a traditional sale or short sale makes more sense for you.

A short sale is when your lender agrees to let you sell your home for less than what you owe on the mortgage, accepting the proceeds as full or partial settlement. The process generally involves submitting a hardship package to your lender (income, expenses, hardship letter), getting their approval on the listing price, and then finding a buyer. Short sales take longer than traditional sales because of lender review, sometimes 60 to 120 days, but they avoid the credit damage of a full foreclosure and can result in less remaining debt. Patroy has experience navigating short sale negotiations with lenders.

No, and any agent who promises to "stop" your foreclosure is being misleading. Only your lender, a court, an attorney through specific legal action, or your own payments can halt the foreclosure process. What Patroy can do is help you sell your home before the foreclosure completes, pursue a short sale, connect you with a HUD counselor or attorney who may have legal options, or simply give you honest information so you can make better decisions. Honest help is more useful than empty promises.

HUD certified housing counselors are free, government approved advisors who help homeowners understand all their foreclosure options, including loan modification, repayment plans, refinancing, selling, or programs you may qualify for. They have no financial incentive in any specific outcome, which makes them an excellent unbiased resource. You can find one by calling 1-800-569-4287 or visiting hud.gov. Many homeowners find it helpful to speak with both a HUD counselor and a real estate professional like Patroy, since each handles different parts of the situation.

A completed foreclosure typically drops your credit score by 100 to 160 points and remains on your credit report for 7 years. This can affect your ability to rent, take out new loans, or in some cases, secure employment. A short sale generally causes less damage, usually 50 to 130 points, and is sometimes reported differently. Bankruptcy and certain modification arrangements may also affect your credit. A HUD counselor or credit advisor can walk through the specific implications for your situation.

This situation is called being "underwater" or "upside down" on your mortgage, and you are not alone. Several paths exist: a short sale (your lender agrees to accept less than the balance and forgive part of the debt), a deed in lieu of foreclosure (you transfer the home to the lender to avoid foreclosure proceedings), pursuing a loan modification to make payments affordable, or in some cases, staying and waiting for the market to recover. The right path depends on your finances, the size of the shortfall, and your goals. Patroy can run the numbers with you.

Before a lender can file foreclosure in New York, state law (RPAPL 1304) requires them to send you a 90 day pre foreclosure notice. This notice must include specific information, including a list of approved housing counselors and a warning that you may lose your home. This 90 day window is one of the most critical periods of the foreclosure timeline. It is when most options are still available, including selling, pursuing a short sale, applying for loan modification, or speaking with a counselor. If you have just received this notice, do not panic, but do start exploring your options.

Possibly, and the answer depends on current tax law and your specific situation. In the past, forgiven mortgage debt was sometimes treated as taxable income by the IRS, though primary residence exceptions have applied at various times under the Mortgage Forgiveness Debt Relief Act and its extensions. State tax treatment can differ from federal. This is one of the most overlooked aspects of foreclosure and short sale planning, and it can significantly affect your net outcome. Always consult a CPA or tax attorney before deciding on a path.

Nothing upfront. Patroy is paid through standard real estate commission only when and if your home sells, and the commission is typically paid out of the sale proceeds. Initial consultations are completely free, confidential, and come with no obligation to list, sell, or do anything at all. New York law prohibits real estate professionals from charging fees specifically to "help" with foreclosure separate from a real sale, so be cautious of anyone asking for upfront payment for foreclosure assistance.