Beware of Mortgage Scams
It is illegal for anyone to “guarantee” you a modification.
Beware of anyone who asks you to pay upfront for mortgage modification services. In New York, it is illegal for non-attorneys to charge upfront fees for mortgage modification assistance.
Do not follow the advice of someone who tells you to stop paying your mortgage and pay them instead.
Beware of any person or entity that guarantees or promises to modify your mortgage. Be especially wary of unsolicited help.
It’s Never Too Late to Seek Help
Whether you are just starting to have trouble making your mortgage payments or if you have been in foreclosure for many months, it’s time to get help—you don’t have to go through this alone!
The housing counselors and legal services providers we work with offer high-quality foreclosure prevention services—and it won’t cost you anything.
The Foreclosure Process in New York
New York is a judicial foreclosure state, which means that foreclosures happen within the court system.
The foreclosure process in New York State is very long! On average, it takes over two years to complete a foreclosure in New York so don’t give up hope; there may be other options.
What You Can Do
It’s Still Your House
Continue to care for your property. It’s important to maintain your property value as much as possible.
Enter into lease agreements with your tenants. You can still receive rent while you are going through the foreclosure process.
Continue to pay your utilities, including water, gas, and electric.
Pay Your Taxes and Insurance
Your bank will continue to pay taxes and insurance if they are part of your monthly mortgage payment.
If you pay your taxes and insurance separately, make sure to continue making those payments. If you stop making insurance payments, the bank will choose a new policy for you, and it may choose a much more expensive plan.
Know How Much You Owe
If you fall behind on your payments, interest continues to accrue each month.
Call your bank and ask for your “pay-off” figure. This is the amount remaining on your loan plus any interest that you owe.
Continue to Save
During the foreclosure process you should be saving money if your bank is no longer accepting payments.
You can open a new savings account or continue saving in your current bank account. If you are able to save one-third of your income each month, you should have reserves ready to start making payments once your foreclosure is resolved.
A housing counselor or legal services provider may be able to help you set up an account to save.
Call 311 and ask for the Center for NYC Neighborhoods or dial us directly at 646-786-0888 to be connected to high-quality services at no cost to you.