Post-Pandemic Foreclosure Surge: Understanding New York’s Extended Homeowner Protection Programs in 2025

New York Homeowners Face a Perfect Storm: How Post-Pandemic Foreclosure Surges Are Testing Extended Protection Programs in 2025

As New York emerges from the shadow of the COVID-19 pandemic, homeowners across the state are confronting an unprecedented foreclosure crisis that’s putting even the most robust protection programs to the test. While foreclosure rates began to rise again in 2022 and 2023 following the end of pandemic-era protections, foreclosure rates are still expected to remain around pre-pandemic levels for the remainder of 2025. However, this seemingly stable outlook masks a more complex reality for New York homeowners who are still struggling with the economic aftershocks of the pandemic.

The End of New York’s Historic Foreclosure Moratorium

The hardship stays provided under New York’s COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 (EEFPA) officially ended on January 15, 2022. The EEFPA was the legislature’s response to protect New Yorkers affected by a financial hardship caused by the COVID-19 pandemic from the threat of immediate foreclosure or eviction. This marked the end of what many considered the most comprehensive foreclosure protection program in the nation.

New York had one of the most comprehensive eviction and foreclosure moratoriums in the nation. The “COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020” prevented residential evictions, foreclosure proceedings, credit discrimination, and negative credit reporting related to COVID-19. The program allowed homeowners to file hardship declarations that would automatically stay foreclosure proceedings, providing critical breathing room during the height of the pandemic.

New York’s Homeowner Assistance Fund: A Lifeline for Struggling Families

In response to the ongoing crisis, New York State became the first state in the nation to receive U.S. Department of the Treasury’s approval to launch its Homeowner Assistance Fund, a program that provided up to $539 million to help eligible homeowners avert mortgage delinquency, default, foreclosure, and displacement. Applications were accepted beginning Monday, Jan. 3, 2022.

The New York State Homeowner Assistance Fund is now closed and no longer serving individuals on the waitlist. The program assisted nearly 17,000 homeowners with $465 million in awards and also helped 2,800 homeowners get an affordable loan modification with their lenders. While this program provided substantial relief, its closure has left many homeowners wondering where to turn for help.

Current Protection Programs and Resources in 2025

Despite the closure of the HAF program, New York homeowners still have access to several protection programs. The New York State Attorney General’s Homeowner Protection Program (HOPP) is a network of more than 90 housing counseling and legal services organizations across the state that provide free help to homeowners. This program continues to offer crucial support for foreclosure prevention and scam avoidance.

If you have a Fannie Mae or Freddie Mac loan and your mortgage servicer learns that you’ve applied to your state’s Homeowner Assistance Fund program, the servicer must suspend any foreclosure activity for up to 60 days. Additionally, various federal protections remain in place, particularly for borrowers with government-backed loans.

The Role of Experienced Legal Representation

In this challenging environment, homeowners facing foreclosure need experienced legal guidance more than ever. When dealing with complex foreclosure proceedings, working with a skilled foreclosure attorney in Nassau County can make the difference between losing your home and finding a viable solution.

Legal professionals who specialize in foreclosure defense understand the intricacies of New York’s foreclosure laws and can identify potential defenses that homeowners might not recognize on their own. Foreclosure law deals with the complex legal process through which a lender can seize a property from a borrower who defaults on their mortgage payments. This process can be complicated, involving paperwork, deadlines, and legal procedures.

What Homeowners Can Expect in 2025

Foreclosure rates in the rest of 2025 are expected to remain about the same (that is, relatively low). Foreclosure rates in the rest of 2025 are expected to remain about the same (that is, relatively low). However, this doesn’t mean homeowners should become complacent. Economic disruptions, changes in interest rates, or climate-related events could alter these predictions.

A research firm released an analysis in 2025 projecting that foreclosure rates will go up by around 1% for every 1% rise in insurance costs. Foreclosures across the United States could increase by 380% over the next 10 years due to flooding, wind, fire, and other climate-related incidents. This emerging threat adds another layer of complexity to homeowner protection efforts.

Taking Action: Resources for Homeowners at Risk

For homeowners currently facing financial hardship, several immediate steps can help protect their homes:

  • Contact your mortgage servicer immediately to discuss forbearance or modification options
  • Reach out to HUD-approved housing counseling agencies for free guidance
  • Explore remaining federal assistance programs for government-backed loans
  • Consult with a foreclosure defense attorney to understand your legal options

If you are a homeowner in need of other resources, you can connect with a free housing counselor at https://homeownerhelpny.org/. These counselors can provide valuable guidance on available programs and help homeowners navigate their options.

The Path Forward

While New York’s extended homeowner protection programs have provided crucial support during the post-pandemic recovery, the landscape continues to evolve. Counsel should be diligent in getting matters back on the court’s active calendars, requesting that aged motions be decided, and getting conferences scheduled so foreclosure actions can proceed. Due to pandemic delays and the number of foreclosure actions in the pipeline, some delays will continue due to the sheer volume of cases that now need to be processed.

The key for homeowners is to act quickly when facing financial difficulties. Early intervention often provides the best chance for successful resolution, whether through loan modification, payment plans, or legal defenses. With the right combination of available programs and experienced legal guidance, many New York homeowners can still find pathways to keep their homes despite the challenging post-pandemic environment.

As we move through 2025, the success of New York’s homeowner protection efforts will depend on continued collaboration between state agencies, legal professionals, housing counselors, and the homeowners themselves. While the landscape has changed since the height of the pandemic, the commitment to protecting New York families from unnecessary foreclosure remains as strong as ever.