Pre-Foreclosure Actions by Financial Institutions

August 24, 2026 By Elliot S. Schlissel

The first step a financial institution and/or their attorneys must take before initiating a foreclosure lawsuit involves sending of an acceleration letter to the homeowner. The acceleration letter tells the homeowner the financial institution is accelerating the entire amount of the mortgage that is currently due and owing. Acceleration letters are sent to homeowners after they default in making mortgage payments. This usually takes place when the homeowner is 3 or more months behind on the payment of the mortgage.

The homeowner is considered to be in default of the mortgage loan after they miss one payment. However, acceleration letters are generally not sent until the borrower is at least 2 or 3 months behind on their mortgage payments.

90 Day Notice

90 days before financial institutions, and/or their attorneys, initiate a foreclosure lawsuit the homeowner must receive a 90 day notice. A 90 pre-foreclosure notice under New York State Law, will advise the homeowner that a foreclosure Summons and Complaint will be served upon them. The 90 day notice advises the homeowner they have 90 days to cure the default in their mortgage or they will be sued in a foreclosure case. If the homeowner makes all of the missed payments, the bank will have to reinstate the mortgage and the foreclosure will not go forward. The failure of the bank of the bank’s attorneys to give all of the homeowners a 90 day notice is a defense to the foreclosure lawsuit.

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.