I Want to Keep My Home: Your Options

Behind on payments or already in foreclosure? In New York, you can often work toward keeping your home while the process is ongoing. We’ll lay out clear options and timelines—without legal jargon.

First, Assess Your Financial Reality

Before exploring options to keep your home, be honest about whether your income can support your loan size and monthly payment. Calculate your debt-to-income (DTI) ratio: total monthly debt payments ÷ gross monthly income. Most lenders want this below 43%.

Loan Modification

What it is: Permanent change to your mortgage terms to make payments more affordable. Potential benefits include lower payments, lower rate, extended term, and sometimes principal reduction.

Refinancing (If Mod Is Rejected)

What it is: Replace your loan with a new one. Waiting periods apply: generally 2 years after bankruptcy discharge and 2 years after a foreclosure is finalized—this can follow the property even if you weren’t on the original loan.

Forbearance / Repayment Plan

What it is: Temporary pause or reduction in payments, or a structured plan to catch up on arrears. Useful for short-term hardship—note that paused amounts must be repaid later.

Important Eligibility Note

Reverse mortgages: Not available if you are in foreclosure or have recent missed mortgage/property-charge payments. That option has been removed from this page to avoid confusion.

Critical Downsides You Must Consider

“Underwater” risk (explained): Owing more than your home is worth—for example, owing $350,000 on a home worth $200,000.
Balloon payments: Some loan mods include large lump sums at the end (e.g., $50,000 due after years of payments).
Higher interest: If you had ~3% in 2020, a new mod today could be 7%+.
40-year terms: Longer terms can mean tens of thousands more in total interest (a $300,000 loan can become $500,000+ over time).
Credit score impact: Modifications can drop credit scores significantly and affect future borrowing.

Hard Truth Questions Before Deciding

Can you realistically afford this payment long-term?
What happens if there’s a medical emergency or job loss?
Are you delaying the inevitable?
Is keeping this home worth the ongoing financial stress?
Would renting be cheaper and less stressful right now?

Get a Clear Keep-My-Home Plan

We’ll map your options, timelines, and likely outcomes—plain English, no pressure.

Prefer to talk? Call 516-776-9993.

We’re not a law firm or HUD agency. We coordinate with approved counselors and your chosen attorney. Your situation is unique; timelines and outcomes vary.