Foreclosure in New York State – Part I
November 6, 2026 By Elliot S. Schlissel
A foreclosure is a lawsuit that the financial institution which holds a mortgage brings against the homeowner. The lawsuit is brought in the Supreme Court of the County where the property is located. The financial institution has to bring a lawsuit against the homeowner to enforce their rights under the terms of the mortgage and the note regarding non-payment. If the financial institution is successful in the lawsuit, it can obtain a judgment from a Judge sitting in the Supreme Court that will authorize the financial institution, through its attorneys, to sell the foreclosed property at an auction sale. The money received from the auction sale is used to pay off the mortgage. Up until the time that the foreclosed home is sold in the foreclosure lawsuit, the homeowner still technically owns the property and the homeowner can sell their property on their own.
Start of the Foreclosure Lawsuit
A foreclosure starts when the lawsuit is filed by the attorneys for the financial institution in the County Clerk’s Office in the County where the home is located. Up until the time the home is sold, there are a variety of remedies and defenses a homeowner can utilize to save their home from being sold. Homeowners who find themselves in foreclosure should consult with an experienced foreclosure defense attorney.
The Foreclosure Process
90 days prior to filing a foreclosure lawsuit in the State of New York a financial institution, or their attorneys, must send the homeowner a specific notice indicating their home is going into foreclosure. There are statutory requirements as to the terms of this notice. They must attach a list of at least 5 non-profit housing counseling agencies located near the homeowner that the homeowner can go to for help.
The law firm of Schlissel DeCorpo LLP has been helping families deal with mortgage and foreclosure problems for more than 30 years. We can be reached at 718-350-2802, 516-561-6645 or 631-319-8262 or by e-mail at info@sdnylaw.com.