Pre-Foreclosure in Queens: How to Act Now

If you have received a 90-day pre-foreclosure notice in Queens, you are in the most important window of the entire foreclosure process. Pre-foreclosure is the period between that notice and the filing of a foreclosure lawsuit. During this time, you have the maximum number of options, the most negotiating leverage, and the best chance of resolving the situation on your terms. Once the lawsuit is filed, your options narrow and the process moves out of your control.

This guide explains exactly what pre-foreclosure means in New York, what the 90-day notice requires, where to find free help in Queens, what loss mitigation options are available, and how selling during pre-foreclosure works. Every day you wait reduces your options, so read this now and take action today.

Pre-Foreclosure vs. Foreclosure: The Critical Difference

Many homeowners confuse pre-foreclosure with foreclosure, but the difference is significant:

The 90-Day Pre-Foreclosure Notice (RPAPL 1304)

New York Real Property Actions and Proceedings Law Section 1304 requires your mortgage servicer to send you a specific written notice at least 90 days before filing a foreclosure action. This is not optional for the lender — if they fail to send this notice properly, the entire foreclosure case can be dismissed.

The notice must include specific language warning you about the pending action, a list of at least five government-approved housing counseling agencies near you, and information about your right to seek assistance. The notice must be sent by both first-class mail and certified mail to your last known address.

What this means for you: You have at least 90 days from when you receive this notice before the lender can even begin the foreclosure lawsuit. This is your golden window. Use it to explore every option available.

Free HUD Counselors in Queens

The most underutilized resource for Queens homeowners in pre-foreclosure is free housing counseling from HUD-approved agencies. These counselors work for you, not the lender, and their services are completely free. They can review your financial situation, help you prepare a complete loss mitigation package, and communicate with your servicer on your behalf.

HUD-approved agencies serving Queens include:

• Neighborhood Housing Services of Jamaica (NHS Jamaica) — Located in Jamaica, Queens. Provides one-on-one foreclosure prevention counseling, loss mitigation assistance, and financial coaching.
• Neighborhood Housing Services of NYC — Serves all five boroughs with foreclosure prevention, financial counseling, and first-time homebuyer programs.
• CAMBA — Brooklyn-based but serves Queens residents. Provides foreclosure prevention, housing counseling, and legal referrals.
• Queens Legal Services Corporation — Provides free legal assistance to low-income Queens residents facing foreclosure.

To find the nearest HUD-approved counselor, call the HUD hotline at 1-800-569-4287 or visit the HUD website and search by ZIP code. Do this today, not next week.

Loss Mitigation Options During Pre-Foreclosure

Loss mitigation is the umbrella term for all alternatives to foreclosure. During pre-foreclosure, you have the most options and the most leverage to negotiate. Here are the primary loss mitigation paths:

Loan modification. Your servicer permanently changes the terms of your mortgage to make payments affordable. This can include reducing the interest rate, extending the loan term, adding missed payments to the back end, or in rare cases reducing the principal balance. Apply by submitting a complete loss mitigation application including income documentation, bank statements, a hardship letter, and IRS Form 4506-T.

Reinstatement. You pay the total past-due amount in one lump sum, bringing the loan current. This works if you have access to a one-time source of funds — a gift from family, proceeds from selling another asset, or a 401(k) loan. Reinstatement stops the foreclosure process entirely and returns your mortgage to normal status.

Repayment plan. Your servicer allows you to pay the past-due amount over time on top of your regular monthly payment. For example, if you are $12,000 behind, you might pay an extra $1,000 per month for 12 months while also making your regular payment. This requires enough income to handle the larger payment.

Forbearance. Your servicer temporarily reduces or pauses your payments for three to six months. This buys time if your hardship is temporary — job loss with re-employment expected, medical recovery, or a short-term income disruption. Important: forbearance does not forgive the missed payments. You must have an exit strategy.

Short sale. If you owe more than your home is worth, you sell the property for less than the mortgage balance with your lender's approval. The lender accepts the sale proceeds as satisfaction of the debt. During pre-foreclosure, short sale approval is faster because no lawsuit complicates the process. See our Short Sale Guide for Queens & Brooklyn for the complete process.

Deed-in-lieu of foreclosure. You voluntarily transfer ownership to the lender in exchange for being released from the mortgage obligation. Less damaging to credit than a completed foreclosure and avoids the court process entirely.

Selling During Pre-Foreclosure

For many Queens homeowners, selling the property during pre-foreclosure is the strongest option, especially if you have equity. Here is why pre-foreclosure is actually the best time to sell:

• No lis pendens on title. Since no foreclosure lawsuit has been filed, your title is cleaner. Buyers and their lenders are not deterred by a pending foreclosure case.
• You control the process. You choose the listing price, the agent, and the closing timeline. In foreclosure, the court and the lender control everything.
• Maximum sale price. A properly marketed, correctly priced listing will sell for far more than a foreclosure auction, where buyers demand steep discounts.
• Credit protection. Selling before the foreclosure is filed prevents the foreclosure from ever appearing on your credit report as a completed foreclosure.
• You keep your equity. If your Queens home is worth more than you owe, selling lets you walk away with the difference. In foreclosure, that equity may be consumed by legal fees and below-market auction prices.

In Queens, where the median home value exceeds $700,000, many homeowners have significantly more equity than they realize. Before assuming you cannot sell for enough, get a proper market analysis from an agent who knows Queens values at the block level.

The Mandatory Settlement Conference

If you do not resolve your situation during the pre-foreclosure period and the lender files a foreclosure lawsuit, New York law requires mandatory settlement conferences for residential properties. These conferences are a powerful protection for homeowners, but only if you attend.

Here is how the settlement conference process works in Queens:

1. After the foreclosure complaint is filed and served, the court schedules an initial settlement conference, typically within 60 days.
2. The conference is held at Queens Supreme Court before a court-appointed referee.
3. Both you (or your attorney) and the lender's representative must attend. The referee facilitates negotiation.
4. The goal is to explore alternatives to foreclosure: loan modification, repayment plans, forbearance, short sale, or deed-in-lieu.
5. The referee can order the lender to review your loss mitigation application and respond within a specific timeframe.
6. If no resolution is reached, additional conferences are scheduled. Cases can remain in settlement conferences for months or even years.

Critical rule: Attend every settlement conference. If you fail to appear, the court can move your case forward toward judgment and auction without further conferences. If you cannot attend, send your attorney. If you do not have an attorney, contact Queens Legal Services Corporation for free representation.

Your Action Plan: What to Do Today

If you have received a 90-day pre-foreclosure notice or you have missed multiple mortgage payments and expect one, here is your immediate action plan:

1. Open and read the notice carefully. Note the date it was sent, the amount owed, and the list of HUD-approved counseling agencies.
2. Call a HUD-approved housing counselor today. Dial 1-800-569-4287 or contact NHS Jamaica directly. This is free and confidential.
3. Gather your financial documents. Last two months of bank statements, last two pay stubs, most recent tax return, and a list of monthly expenses. You will need these for any loss mitigation application.
4. Contact your mortgage servicer. Call the number on your mortgage statement and ask to speak with the loss mitigation department. Request a loss mitigation application package.
5. Consult a foreclosure defense attorney. Many offer free initial consultations. An attorney can review your situation, evaluate whether the lender properly complied with RPAPL 1304, and represent you if the case moves to court.
6. Get a market analysis. Call (917) 705-0132 to find out what your property is worth today. If selling is the right option, starting during pre-foreclosure gives you the maximum time and cleanest title.

The single most important thing to understand about pre-foreclosure is that it is a deadline, not a permanent state. The 90-day notice is a countdown clock. Every day you spend not acting is a day of leverage you are losing. The options described in this guide are all available to you right now, but they will not be available forever. Act today.

Nitin Gadura

Licensed NYS Real Estate Salesperson | Gadura Real Estate, LLC

Nitin Gadura works with Queens homeowners in pre-foreclosure to evaluate their options, whether that means pursuing a loan modification, selling the property to preserve equity, or negotiating a short sale. He provides confidential guidance and connects homeowners with HUD counselors and foreclosure defense attorneys.

Supervised by Vinod K. Gadura, Licensed Real Estate Broker, Gadura Real Estate, LLC, 106-09 101st Ave, Ozone Park, NY 11416 | (917) 705-0132