Will my lender work with me?
Most lenders prefer alternatives to foreclosure because it's expensive for them too. Contact your servicer's loss mitigation department early.
Can I sell if I'm behind on payments?
Absolutely. If you have equity, selling is often the best option. The mortgage gets paid at closing.
How many payments can I miss before foreclosure starts?
In New York, lenders must send a 90-day pre-foreclosure notice (RPAPL §1304) before filing. This notice can't be sent until you're at least 120 days delinquent. So you typically have 4-7 months of missed payments before formal proceedings begin.
Will a loan modification lower my monthly payment?
It can. Modifications may extend the loan term, reduce the interest rate, or add missed payments to the balance. Approval depends on your income, expenses, and the lender's guidelines.
What is forbearance and how does it work?
Forbearance is a temporary pause or reduction in your mortgage payments. It doesn't erase what you owe — you'll need to repay the missed amount later, either in a lump sum, added payments, or added to the loan balance.
Should I still pay property taxes if I'm behind on the mortgage?
If possible, yes. Unpaid property taxes create an additional lien on the property and can lead to a separate tax foreclosure process, compounding your risk.
Can I refinance if I've missed payments?
Traditional refinancing typically requires a current payment history. However, some government programs exist for distressed borrowers. A mortgage broker can assess your specific eligibility.
What happens to my equity if I do nothing?
If foreclosure proceeds, the property is sold at auction — often below market value. Late fees, legal costs, and penalties accumulate, eating into your equity. Acting early preserves the most value.
