Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In New York, foreclosure is a judicial process that begins when a homeowner defaults on their mortgage payments. The lender, typically a bank, must file a lawsuit in state court to obtain a legal order to foreclose on the property. This process involves serving the homeowner with a summons and complaint, providing them an opportunity to respond. If the court rules in favor of the lender, the property can be sold at auction. New York also requires a settlement conference to be held within 60 days of the filing of the proof of service, which is an opportunity for the homeowner to negotiate with the lender for loan modification or other alternatives to foreclosure. The entire process can take a significant amount of time, often more than a year, due to the legal requirements and the homeowner's right to contest the foreclosure. It's important for homeowners facing foreclosure in New York to consult with an attorney to understand their rights and options.