Can I sell my house if it's in foreclosure in Brooklyn?

If you own a house in Brooklyn, NY and you are dealing with foreclosure, this page covers what actually happens next — the local timeline, what it costs, and the options that stay open to you. Everything below is specific to Brooklyn and how sales are handled in NY, not generic national advice.

Direct Answer

Yes, you can absolutely sell your house if it is in foreclosure in Brooklyn. In New York, you remain the legal owner of your property and have the right to sell it at any point until the moment the referee’s hammer falls at a public auction.

Key Details

Selling a home during foreclosure is often the best way for Brooklyn homeowners to protect their credit and potentially walk away with money. Because New York is a "judicial foreclosure" state, the process moves through the court system and can take anywhere from one to three years. This long timeline gives you a significant window of opportunity to find a buyer.

There are two main ways to sell during this period:

1. Equity Sale: If your home is worth more than what you owe the bank (including back payments and legal fees), you can sell it just like a normal house. You pay off the bank at the closing and keep the remaining profit.
2. Short Sale: If you owe more than the house is worth, you must get the bank’s permission to do a "short sale." In this scenario, the bank agrees to accept less than the full amount owed. While this requires a lot of paperwork and lender approval, it avoids a foreclosure judgment on your record.

Crucially, once a Lis Pendens (notice of pending legal action) is filed against your property, it becomes a public record. This will show up in a title search, meaning any buyer's attorney will see the foreclosure. To successfully close the sale, you must provide a "payoff letter" from your lender showing exactly how much is needed to clear the debt and avoid the foreclosure sale.

NY-Specific Laws

New York has some of the strongest homeowner protection laws in the country. Understanding these statutes is vital for anyone trying to sell or save their home:

• Judicial Process: In NY, foreclosure is a lawsuit. Under RPAPL § 1301, the lender must sue you in Supreme Court to get a judgment of foreclosure and sale. This prevents "surprise" evictions and gives you time to sell the property.
• 90-Day Pre-Foreclosure Notice: Under RPAPL § 1304, lenders must send a specific notice to the homeowner at least 90 days before starting a court case. This notice must be sent in 14-point type and include a list of at least five government-approved housing counseling agencies. If the bank fails to do this correctly, a judge may dismiss the entire case.
• Mandatory Settlement Conference: Under CPLR 3408, the court must schedule a meeting between you and the bank within 60 days of the start of the case. Both sides are required by law to negotiate in "good faith." This is a perfect time to tell the court and the bank that you are actively trying to sell the home.
• Equitable Right of Redemption: This is your legal right to pay off the full debt and avoid the foreclosure sale at any time before the auction sale. However, NY does not have a "post-sale redemption period." Once the auction is over, you cannot get the house back.
• Statute of Limitations: Under CPLR 213(4), a lender generally has six years to start a foreclosure. The recent Foreclosure Abuse Prevention Act (FAPA) prevents banks from easily resetting this six-year clock once they have accelerated the loan.

Brooklyn Local Context

If your home is in Brooklyn, your case will likely be handled at the Kings County Supreme Court located at 360 Adams Street. Brooklyn has several specialized resources to help homeowners navigate these courts:

• Kings County Foreclosure Clinic: Held at the courthouse, this clinic provides free legal advice for homeowners who are representing themselves (pro se).
• NHS Brooklyn (Neighborhood Housing Services): Based in East Flatbush, they are a HUD-certified nonprofit that helps Brooklynites with short sale negotiations and loan modifications.
• CAMBA: Located in Flatbush, CAMBA provides free legal services and foreclosure prevention counseling specifically for Brooklyn residents.
• Grow Brooklyn: This nonprofit offers specialized help with estate planning and foreclosure prevention, ensuring that family homes stay in the family or are sold for a fair price.
• Access Justice Brooklyn: Formerly the Volunteer Lawyers Project, they provide free legal representation to low-income homeowners in foreclosure cases.

What You Can Do Right Now

1. Get a Payoff Statement: Call your mortgage servicer and request a formal payoff statement. You need to know the "to-the-penny" amount required to clear the lien.
2. Contact a Housing Counselor: Call a Brooklyn-based nonprofit like NHS Brooklyn at (718) 469-4679. Their services are free and can help you communicate with the bank.
3. Hire a Local Real Estate Attorney: In NY, you must have an attorney for a real estate closing. Choose one who specifically understands foreclosure defense.
4. List the Property: If you have equity, get the home on the market immediately. A signed contract of sale is a powerful tool to show the judge that the case should be delayed while the sale progresses.
5. Answer the Summons: If you just received a Summons and Complaint, you usually have 20–30 days to file a written "Answer." Do not ignore this, or the bank will win by default, speeding up the auction date.