If you’re facing foreclosure in New York City, you’re probably feeling pressure from all sides — the lender, the court, and the clock. But here’s the good news: you can still sell your home during foreclosure in New York.
Whether you’re in Brooklyn, Queens, the Bronx, or Staten Island, homeowners across the five boroughs have the right to sell their property before the foreclosure auction. Acting early could protect your credit and preserve what equity you still have.
👉 Foreclosure may be stressful, but it’s not final — and selling smart could save you years of financial recovery.
Understanding Foreclosure in New York
New York is a judicial foreclosure state, meaning lenders must go through the courts. That process gives homeowners time to respond — and opportunities to sell before the home is auctioned.
Here’s how the timeline works:
- 90-Day Pre-Foreclosure Notice (RPAPL §1304): Before filing, lenders must send a written notice explaining the arrears and listing free counseling resources.
- Settlement Conference (CPLR 3408): Once served, you’ll attend a mandatory court conference — usually within 60 days — to explore workout or modification options.
- Right of Redemption: You can pay what’s owed and “redeem” the property up until the referee accepts the winning bid at auction. After that, it’s typically too late.
For New York City homeowners, the court process can take many months — sometimes more than a year — which means you still have time to sell if you act before the auction date is set.
👉 Knowing these stages gives you room to breathe — and the power to make the next move before the court does.
Can You Sell a House in Foreclosure?
Yes — you legally own your property until the deed transfers after the foreclosure auction. That means you can sell your house fast during foreclosure and pay off what you owe at closing.
Cash home buyers can often close within a week, which fits the tight windows that NYC foreclosure cases create. If your home has equity, you may even walk away with funds after the mortgage, arrears, and liens are paid.
On Reddit’s r/RealEstateAdvice, one NYC homeowner shared that their lender paused court action after seeing proof of a pending sale. Others noted that serious buyers stepped up when sellers showed clean title and clear intent to close fast.
💡 The earlier you act, the more control you keep — and the less damage your credit will take.
Key Concepts
Here are some essential terms to know if you’re selling a home in foreclosure in New York:
- Pre-Foreclosure Notice: The 90-day letter that starts the countdown.
- Settlement Conference: A court-mandated meeting where you and the lender discuss options.
- Short Sale: Selling below what’s owed, with lender approval.
- Deficiency Judgment: If the sale doesn’t cover your debt, the lender can seek the balance through court.
- NY Seller Disclosure (PCDS): You must provide a Property Condition Disclosure Statement (or credit the buyer in lieu of it).
- Lead-Based Paint Rules: Federal law applies for pre-1978 homes; NYC has additional lead record-keeping requirements.
- Transfer Taxes: New York State’s 0.4% RETT plus NYC’s Real Property Transfer Tax (RPTT), both typically paid by the seller.
Reddit discussions in r/NYCinvesting often warn about title issues in older borough homes — such as unpaid water bills or HPD registration lapses — that can delay closing.
🧭 Understanding these details keeps your sale on track and your stress in check.
Deadlines and What They Mean for New York Homeowners
New York foreclosures move slower than many states, but once an auction is scheduled, things accelerate fast. You can sell any time before the referee accepts the final bid — but it’s best to close weeks in advance to avoid last-minute legal hurdles.
Use the settlement conference to request a modification, forbearance, or short extension if you’re under contract with a cash home buyer. Courts sometimes allow scheduling flexibility when they see genuine sale progress.
⏳ Every week matters — and proactive sellers often win the race against the auction calendar.
Communicating with Your Lender
Let your lender know that you’re selling.
Banks prefer a payoff to a foreclosure judgment — it saves them legal fees and auction uncertainty. Keep them informed through your attorney or directly with the lender’s loss-mitigation department.
Homeowners on r/Homeowners say lenders often become more flexible once they receive a signed purchase offer or proof of escrow. One commenter even noted their foreclosure case stalled for several months after showing contract documents to the court.
💬 Honesty and progress go a long way — lenders cooperate more when they see you’re taking action.
Short Sales vs. Cash Sales
A short sale can help if your loan balance is higher than your home’s market value. However, approval can take months — time most homeowners in New York City don’t have.
A cash sale, meanwhile, can close in days. You avoid inspections, repairs, and financing delays — which is crucial when every deadline counts.
As one Reddit user said, “I was three weeks from auction — a cash home buyer saved my credit and closed in ten days.”
🏡 When the clock is ticking, certainty beats complexity — especially in the NYC market.
Tips for New York, NY Homeowners
- Confirm any open violations, HPD registration issues, or unpaid utility bills — these can block closing.
- Sellers must complete the Property Condition Disclosure Statement or credit the buyer $500.
- Expect to pay NY State RETT and NYC RPTT at closing.
- “Mansion tax” applies to homes sold for $1M+ (paid by buyer, but negotiable).
- Check your Certificate of Occupancy (CO/TCO) for compliance if you’ve renovated or rented units.
In community threads like BiggerPockets and r/NYCinvesting, investors often note that quick document prep — payoff letters, tax receipts, lien releases — can make or break an NYC closing.
✅ Stay organized and responsive — the smoother your paperwork, the faster your deal closes.
Key Takeaways
- You can sell your house fast while in foreclosure in New York City — but act before the auction.
- Watch for the 90-day RPAPL §1304 notice and respond quickly.
- Attend your settlement conference to explore relief or time extensions.
- Disclose your property condition as required under NY law.
- Expect to pay state and city transfer taxes at closing.
- Cash home buyers can help you close fast and avoid court delays.
🌟 Foreclosure doesn’t erase your options — but it does demand urgency. Start the process before time runs out.
Sell a House in Foreclosure in New York, NY: Frequently Asked Questions
Can I sell my house in foreclosure in New York, NY?
Yes, anytime before the auction — once the referee accepts the bid, ownership transfers.
Peregrine REI helps homeowners in this situation by providing fast fair cash offer and buying houses as-is. We work with trusted local title companies to close quickly—often before the auction date—so you can avoid foreclosure and protect your equity.
What is the 90-day Pre-Foreclosure Notice?
It’s a mandatory letter lenders send before filing a foreclosure case, under RPAPL §1304.
What happens at the settlement conference?
It’s a court meeting between you and the lender to explore payment plans, modification, or sale options.
Can I stop foreclosure by selling?
Yes — proceeds from your sale pay the mortgage, arrears, and liens in full.
Do I have to pay transfer taxes?
Yes — NY State RETT and NYC RPTT are typically seller obligations.
Do I need to provide disclosures?
Yes, the NY Property Condition Disclosure Statement (or a $500 buyer credit).
What about lead paint or CO issues?
Federal and city regulations require disclosure; unresolved violations can delay closing.
Can I request more time from the court?
Possibly — judges often grant short adjournments if you’re under contract to sell.
Is there redemption after auction?
No. Redemption ends once the referee accepts the winning bid.
Who buys homes in foreclosure in NYC?
Local cash home buyers, investors, and “as-is” home specialists familiar with NYC’s process.
Peregrine REI is one of those trusted local cash home buyers—we purchase New York homes in foreclosure for cash, buy properties as-is, and work with local title companies to close quickly so homeowners can avoid foreclosure and move forward with peace of mind.
💬 Even in a city this fast-paced, you still have time — if you start before the gavel falls.
Are You Ready to Sell a House in Foreclosure in New York, NY?
If you’re in foreclosure anywhere in NYC — from Queens walk-ups to Bronx brownstones — remember: you still have control until the day of the auction.
Selling before the referee’s hammer drops lets you avoid lasting credit damage and move forward on your terms.
As one Reddit user reflected, “The hardest part was realizing I could’ve sold months earlier.” Don’t let that be your story.
🚀 Take the first step today — one decision now can protect your future later.
How Our Simple 4-Step Process Works
Helping New York, NY homeowners sell quickly, stress-free, and with confidence.
Step 1 – Tell us about your home (no repairs needed) in New York, NY:
Just share a few details about your New York property. Don’t worry about cleaning or fixing anything—we buy houses exactly as they are.
Step 2 – We take a quick look:
If your home meets our buying criteria, we’ll schedule a short visit at your convenience. No open houses, no strangers walking through—just a quick look so we can confirm details.
Step 3 – Get your fair cash offer:
Within 24 hours, we’ll send you a no-obligation fair cash offer based on your home’s condition and the New York market. You’re in control—no pressure, no hidden strings.
Step 4 – Choose your closing date:
We’ll handle the paperwork and close with a trusted local title company, often in about 7 days. You pick the date that works best for you.
✨ No commissions. No waiting. No stress—just a straightforward, fair cash offer from Peregrine REI.