Working With Your
Lender to Prevent
Foreclosure in
Buffalo NY
Working With Your Lender Prevent Foreclosure Buffalo NY — Loss Mitigation Forbearance Loan Modification WNYBefore a lawsuit is filed, before the Lis Pendens, before the mandatory settlement conference — there is a window where you can resolve this directly with your lender. No courts. No attorneys. No public record. This page tells you exactly who to call, what to say, what to have ready, and what your lender can actually do to help you keep the home.
One important truth before you read further: No agreement can ever be reached if you don’t initiate the conversation. Your lender’s loss mitigation department cannot help you if they don’t know you’re struggling. The embarrassment of the call is temporary. The consequences of not making it are permanent.
Nickel City Buyers, LLC is not a law firm and we are not attorneys. This page is educational information based on our experience purchasing 300+ homes in Buffalo and WNY since 2013. For legal guidance consult a licensed NYS attorney. Free help: nls.org · housinghelpny.org · HOPE Hotline: 1-888-388-4673.
The most important thing most homeowners don’t know: do not call your regular mortgage customer service line. The customer service representative cannot help you with hardship options — they are trained to take payments, not to negotiate workout agreements.
You need to ask specifically for the loss mitigation department — sometimes called the “home preservation department,” “hardship department,” or “default servicing department.” Use those exact words. “I’d like to speak with someone in your loss mitigation department regarding a hardship on my account.” That phrase will route your call correctly.
When you reach loss mitigation, introduce yourself clearly: your name, your loan number (from your mortgage statement), your property address, and a direct statement that you are behind on payments or at risk of becoming behind and want to discuss your options. Be honest. The more specific and accurate your hardship description, the more options they can present.
Document every call. Write down the date, time, representative’s name (or ID number), and a summary of what was discussed and what next steps were promised. Loss mitigation conversations can take weeks — having a call log protects you if follow-through is slow or inconsistent.
If you don’t trust navigating this conversation yourself — which is entirely reasonable — a free HUD-approved housing counselor can do it for you. They negotiate with lenders on behalf of homeowners every day. It is their expertise and it costs you nothing. Contact NY HOPP at housinghelpny.org or 1-855-466-3456.
- “I’d like to speak with someone in your loss mitigation department.”
- Give: loan number, property address, your name
- “I am behind on my payments due to [specific hardship].”
- “I want to keep the home and I need to understand my options.”
- Ask: “What loss mitigation options are available for my loan type?”
- Ask: “What do I need to submit to apply for forbearance / repayment plan / modification?”
- Get a reference number for the call before you hang up.
- Follow up in writing via email or certified mail
Options — Plain English
Loss mitigation departments have three primary tools. Each one is appropriate for a different type of hardship situation.
Your lender pauses or reduces your payments for 3–12 months. You still owe the missed amounts — they are deferred to the end of the loan or rolled into a repayment plan. No permanent change to your loan terms.
Best for: Job loss, medical emergency, temporary income disruption. Not appropriate if your hardship is permanent — forbearance delays, it doesn’t solve.
How to get it: Call loss mitigation. Explain the hardship clearly and specifically. Ask for “forbearance” by name. Submit any requested documentation promptly. Get the agreement in writing before missing any payments.
Your lender spreads past-due payments over 3–12 months, added on top of your regular monthly payment. Best for homeowners whose income has recovered and who can now afford their regular payment plus a modest extra amount each month.
Key question to ask yourself first: Can I actually afford my regular payment plus $200–$400 extra per month? If not, a repayment plan will fail and may accelerate foreclosure.
How to get it: Call loss mitigation. Ask for a repayment plan specifically. Provide proof that your income has stabilized. Get the exact monthly amount and duration in writing before agreeing.
Your lender permanently changes your loan terms — reducing the interest rate, extending the term, or rarely reducing principal. Creates a new lower monthly payment designed to be affordable long-term.
Requires documented hardship, proof of income, and a trial modification period (typically 3 months). Takes 30–90 days for a decision. Lender can deny with no obligation. See our full Loan Modification guide.
How to get it: Contact loss mitigation and request a loan modification package. Submit all required documents simultaneously. Follow up every 5–7 days. Never miss a trial modification payment.
The words you use on the loss mitigation call matter. Here’s what works — and what to avoid.
“I lost my job on [specific date] and my last day of employment was [date]. I am actively looking for work and have an interview scheduled. My household income has dropped from $[amount] to $[amount]. I want to keep my home and I need to understand what options are available to help me get through this period.”
Why this works: Specific dates and amounts establish credibility. Mentioning active job search signals a short-term hardship. Stating your intent to keep the home is required for most workout programs.
“I understand my account is [X] months past due. I can afford to make my regular payment going forward, but I need help with the past-due amount. I’d like to explore a repayment plan.”
Why this works: You’ve identified which specific tool you want. You’ve demonstrated that you can sustain the forward payment. This is exactly the criteria for a repayment plan.
Don’t be vague about the hardship. “Things have been tough” gives the representative nothing to work with and nothing to document. Specific hardship = specific solutions.
Don’t threaten bankruptcy as a negotiating tactic. Loss mitigation representatives hear this constantly. It creates a defensive posture rather than a collaborative one. If bankruptcy is genuinely your next step, consult an attorney — don’t announce it as leverage.
Don’t miss deadlines they set. If a loss mitigation rep tells you to submit documents within 10 days, submit in 3. Missed deadlines cancel applications and restart the clock — sometimes with worse terms.
Don’t assume verbal commitments are final. Nothing is agreed until you have written confirmation. A representative’s verbal assurance that “we won’t proceed with foreclosure while your application is under review” is not enforceable.
Will Ask For
Having these ready before your first call dramatically speeds up the process. Loss mitigation applications stall when documents arrive late or piecemeal.
A written explanation of why you fell behind — in your own words. Include: the specific cause (job loss, medical, divorce, death), the date it happened, how it affected your income, and what has changed or what your plan is. 1–2 pages maximum. Free HUD counselors can help you write an effective one.
Most recent 2–3 months of pay stubs or bank statements showing deposits. If self-employed: profit and loss statement for last 6 months. If unemployed: documentation of benefits or any other income sources. Lenders need to see what you currently earn — not what you used to earn.
Your last 2 years of federal tax returns — all pages. If you file jointly, the joint return. If you haven’t filed recently, address this with a CPA before calling loss mitigation — a missing tax return will stall your application immediately.
Most recent 2–3 months of all bank account statements — checking, savings, and any investment accounts. All pages. Loss mitigation uses these to verify income deposits and evaluate your overall financial picture. Cross out any account numbers before submitting.
A complete list of all monthly obligations: utilities, car payment, insurance, credit cards, medical, phone, internet, food, child support — everything. This is used in the income-to-expense analysis that determines which workout options you qualify for. Be honest and thorough.
Your most recent mortgage statement showing loan number, servicer name, current balance, and payment amount. Also have your property tax bill and homeowner’s insurance declarations page available — lenders frequently ask for these to confirm current escrow status.
Working With Your Lender
Buffalo NY — FAQ
Who should I call when I’m behind on my mortgage in Buffalo or WNY?
Call your mortgage servicer and ask specifically for the loss mitigation department — not the regular customer service line. Use those exact words. If you feel uncomfortable navigating this call yourself, contact a free HUD-approved housing counselor through NY HOPP at 1-855-466-3456 or housinghelpny.org — they will negotiate with your lender on your behalf at no cost. For Erie and Niagara County homeowners, Neighborhood Legal Services at (716) 847-0650 also provides free housing counseling and legal guidance.
Will my lender help me if I’m behind on mortgage payments?
Most lenders have significant incentive to help borrowers avoid foreclosure — foreclosure is expensive, time-consuming, and results in uncertain recovery amounts. Lenders would rather receive modified payments than manage a vacant property through the New York judicial foreclosure process. The answer depends on your loan type, servicer policies, and the severity and nature of your hardship. Government-backed loans (FHA, VA, Fannie Mae, Freddie Mac) have more formalized and accessible workout options than privately-held loans. Contact loss mitigation immediately — the earlier you call, the more options are available.
Do I stop paying my mortgage to qualify for a loan modification?
This is a common misconception. You do not need to stop paying to qualify for a loan modification — and intentionally defaulting to become eligible for modification is risky and can have serious credit consequences. Most modification programs require documented hardship and proof of inability to sustain the current payment, but some programs (like Fannie Mae’s Flex Modification) are available even for borrowers who are not yet delinquent. Call loss mitigation and ask about your specific options before stopping any payments.
How long does it take to get a forbearance in New York?
A forbearance agreement can often be established within days of your initial loss mitigation call — it is the fastest of the three workout options because it requires the least documentation and analysis. Repayment plans similarly can be confirmed quickly once you provide proof of current income. Loan modifications take significantly longer — typically 30–90 days from application to decision. If your situation is urgent (foreclosure complaint already filed or a court date approaching), consider contacting NY HOPP for free legal representation at your mandatory settlement conference rather than negotiating directly.
What if my lender refuses to help me prevent foreclosure?
If direct loss mitigation contact is unproductive, several escalation options exist. First, request a NY HOPP counselor to contact them on your behalf — HUD-approved counselors often have established relationships with servicer loss mitigation departments and can navigate the process more effectively. Second, file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint — servicers are required to respond. Third, consult a licensed NYS foreclosure attorney — in New York’s mandatory settlement conference process, having an attorney representing you at court often produces workout agreements that direct contact did not. If you are certain you want to exit the property, a cash sale to Nickel City Buyers at (716) 557-7005 closes without any lender cooperation required.
What areas of Erie and Niagara County does Nickel City Buyers serve?
We serve all of Erie and Niagara County — Buffalo, Cheektowaga, Amherst, Tonawanda, Lackawanna, West Seneca, Hamburg, Orchard Park, Lancaster, Depew, Kenmore, Williamsville, East Aurora, Clarence, Akron, Grand Island, Niagara Falls, Lockport, North Tonawanda, Lewiston, Youngstown, Wheatfield, Pendleton, and Newfane. Call (716) 557-7005 for a free 10-minute assessment of all your options.
Know Every Option
Forbearance, repayment plan, modification — the full breakdown.
Learn More →NY HOPP, HUD, NLS — free negotiators who work for you.
Learn More →All options before the Lis Pendens — act early for most leverage.
Learn More →Honest side-by-side comparison of both paths.
Learn More →Lender negotiation didn’t work — here’s what to do now.
Learn More →Every foreclosure topic for Buffalo and WNY in one place.
Learn More →Nickel City Buyers — Working With Your Lender — Cash Home Buyers Buffalo & WNY Since 2013
Nickel City Buyers, LLC helps Buffalo and WNY homeowners who are working with their lender to prevent foreclosure, or who need an alternative when lender negotiation fails. We are not a law firm. Located at 3842 Harlem Rd STE 400-339, Cheektowaga, NY 14215. Phone: (716) 557-7005. Website: nickelcitybuyers.com. Erie County Sheriff Sales: 92 Franklin St, Buffalo NY. Niagara County Sheriff Sales: 175 Hawley St, Lockport NY. We serve Buffalo, Cheektowaga, Amherst, Tonawanda, Lackawanna, West Seneca, Hamburg, Orchard Park, Lancaster, Depew, Kenmore, Williamsville, East Aurora, Clarence, Akron, Grand Island, Niagara Falls, Lockport, North Tonawanda, Lewiston, Youngstown, Wheatfield, Pendleton, Newfane, and all of Erie and Niagara County. A+ BBB. 300+ homes since 2013. Free resources: nls.org · housinghelpny.org. Foreclosure Resource Center →
If the Lender
Says No —
We’ll Say Yes.
A cash sale closes without any lender cooperation required. Offer in 24 hours. Close in 7–21 days. All liens paid at closing. Free equity assessment — no obligation.