BEHIND ON MORTGAGE
PAYMENTS IN BUFFALO NY

What Happens When You Miss Mortgage Payments in New York

New York is a judicial foreclosure state — meaning your lender cannot take your home without going through the courts. That gives you time, but only if you use it. Here is what the timeline looks like for most Erie County homeowners:

• 1–2 missed payments: Late fees apply. Lender begins outreach. No legal action yet.
• 90 days delinquent: Lender issues a 90-day pre-foreclosure notice required under NY RPAPL §1304. This is the formal warning shot.
• After 90-day notice: Lender files a foreclosure complaint in Erie County Supreme Court. You are officially in the NY foreclosure process.
• Mandatory settlement conference: NY courts require a settlement conference where you and your lender meet before a judge. This is your opportunity to negotiate — but you must show up.
• Judgment of foreclosure: If no resolution is reached, the court enters a judgment and schedules a Sheriff Sale at 92 Franklin St in Buffalo.
• Sheriff Sale: Your home is sold at public auction. Redemption rights are limited after this point.

The full process in New York typically takes 12–36 months from first missed payment to Sheriff Sale — one of the longest timelines in the country. That window is your opportunity to sell on your terms rather than the bank’s.

Your Options When You’re Behind on Payments

1. Reinstatement

Pay all missed payments, fees, and costs in a lump sum to bring the loan current. Only viable if you have access to funds and the delinquency is recent. Most homeowners in distress don’t have this option.

2. Loan Modification

Request your lender restructure the loan terms — lower rate, extended term, or capitalized arrears. Takes 3–6 months to process. No guarantee of approval. Lender can still proceed with foreclosure during review.

3. Forbearance

Temporary pause or reduction of payments. You still owe the missed amounts — they’re just deferred. When forbearance ends, many homeowners face a lump sum repayment they cannot make.

4. Short Sale

Sell the home for less than what you owe with lender approval. Takes 3–6 months, requires bank sign-off, and still shows as a negative event on your credit. May leave you with a deficiency balance depending on how the lender handles it.

5. Cash Sale to NCB

The fastest, cleanest exit. NCB purchases your home directly — cash, as-is — and pays your lender’s full payoff amount at closing through Erie County title. The foreclosure process stops. Any equity above your total payoff is paid directly to you. No short sale negotiation. No lender approval required. Close in as few as 7 days.

How Far Behind Can You Be Before NCB Can Still Help?

NCB has purchased homes from Buffalo homeowners at every stage — from two missed payments to the day before the Erie County Sheriff Sale. There is no stage of mortgage delinquency that automatically disqualifies a property from a cash offer. The earlier you call, the more time we have to structure a clean closing. But even with urgent timelines, we have closed in 48 hours when needed.

What Happens to My Mortgage at Closing

When NCB purchases your home, the closing is handled through a licensed Erie County title company. At closing, your lender receives their full payoff — principal balance, arrears, fees, and any prepayment penalty — directly from the sale proceeds. The mortgage is discharged. The foreclosure process is terminated. You receive any remaining equity after all payoffs are satisfied.