Facing foreclosure in Rochester and Surrounding Areas in NY? Learn the difference between bank foreclosure and tax foreclosure—and the fastest options to protect your equity and move on.

If you’re dealing with missed mortgage payments (bank foreclosure) or unpaid property taxes (tax foreclosure / tax auction risk), the most important thing is this: the earlier you act, the more choices you have.

At Brett Buys Roc Houses LLC, we help Rochester homeowners understand what’s happening, what your realistic options are, and what a safe next step looks like—especially when time is tight.

What Foreclosure Means in New York

Foreclosure is the legal process where a lender (or municipality) pursues the right to take and sell a property to satisfy a debt.

In Upstate New York, foreclosure situations typically fall into two categories:

• Bank Foreclosure (Mortgage Foreclosure): You’re behind on your mortgage and the lender is enforcing the loan.
• Tax Foreclosure / Tax Sale Pressure: You’re behind on property taxes and the municipality is enforcing its tax lien—sometimes leading to a tax foreclosure or auction timeline.

The details matter—because the strategy that works for bank foreclosure often differs from tax foreclosure.

Bank Foreclosure vs Tax Foreclosure (What’s the Difference?)

Here’s the simplest way to understand it:

Bank Foreclosure (Mortgage)

• The debt is tied to your mortgage lender
• The lender’s goal is to recover their loan balance
• You may have options like reinstatement, modification, short sale, or selling before the case advances

Tax Foreclosure (Property Taxes)

• The debt is tied to unpaid property taxes
• The municipality’s goal is to recover delinquent taxes + penalties
• The clock can feel faster than people expect, and delaying reduces workable solutions

Important to Know: It Can Be Both—and It’s a Race to the Finish Line

In many foreclosure situations, homeowners are not facing just a bank foreclosure or a tax foreclosure—they are often dealing with both at the same time.

When mortgage payments and property taxes fall behind, two separate entities are involved:

• The bank is enforcing the mortgage
• The municipality is enforcing unpaid property taxes

These processes run on different timelines, and both can move forward simultaneously.

Why Timing Matters So Much

In many cases, the bank will step in and pay the delinquent taxes to protect its position and prevent a tax auction. However, this is not guaranteed. Banks do not always intervene in time—or at all—especially if the loan balance is high, the equity is thin, or the foreclosure has dragged on.

That’s why foreclosure situations often become a race to the finish line:

• Will the homeowner act first?
• Will the bank advance funds to cover taxes?
• Will the municipality move toward enforcement or auction?

The outcome depends on who moves fastest, not who has the best intentions.

What’s Most Important to Understand

• You can be in bank foreclosure and tax foreclosure risk at the same time
• Assuming the bank “will take care of the taxes” is a dangerous gamble
• Waiting usually means fewer options, higher penalties, and less control
• Time—not price—is the biggest variable working against you

The goal isn’t to find the perfect solution—it’s to identify which clock is moving faster and act before it decides the outcome for you.

Quick Comparison Table

Signs You’re Entering Pre-Foreclosure

Homeowners often wait too long because they assume “nothing has happened yet.” Common warning signs:

• You’ve missed payments and are receiving escalating lender notices
• You’re overwhelmed and avoiding calls/mail
• You have a tax lien notice, delinquent tax letters, or municipal enforcement mail
• You’re running out of time and need a solution that actually closes

If any of those are true, your best move is to get clarity fast—not guesses, not hope, not “maybe next month.”

Your Real Options to Stop Foreclosure (Bank or Tax)

Below are practical paths homeowners typically consider. The right answer depends on timeline, equity, and your ability to sustain the home long-term.

Option 1: Reinstate or Catch Up (Best if the hardship was temporary)

If you can catch up on the arrears and resume payment stability, this can be the cleanest path.

Works best when:

• The income disruption was short-term
• You can realistically stay current going forward

Option 2: Payment Plan / Arrangement (More common with tax issues)

Some municipalities offer payment arrangements, but they’re not “set it and forget it.” Missed payments can put you right back in danger. How to Stop a Tax Auction in Ro…

Option 3: Refinance / Borrow Against Equity (Only if you qualify and have time)

Refinancing or a HELOC can work, but underwriting timelines and eligibility can be a hurdle—especially under time pressure.

Option 4: List on the MLS (Higher price potential, slower + requires prep)

This can be a good path when:

• The property can pass inspections / financing requirements
• You have time for showings, repairs, and negotiation uncertainty

Option 5: Sell As-Is to a Local Cash Buyer (Speed + certainty)

For many foreclosure and tax-lien situations, the “win” is not maximizing the theoretical top price—it’s executing a real closing before the situation gets worse.

A legitimate local buyer can often help you:

• Sell as-is (no repairs, no cleaning, no showings)
• Coordinate with attorneys/title to resolve liens/taxes at closing
• Choose a closing timeline that matches your reality

What Happens If You Wait Too Long?

Waiting tends to create compounding problems:

• More penalties, fees, and legal costs
• Increased chance of title complications
• Reduced buyer pool (traditional buyers avoid complexity)
• Less negotiation power and fewer exit routes

Even experienced buyers can only do so much if deadlines are too close—time is the one thing you can’t refinance

Why “Local” Matters When Foreclosure Is Involved

Foreclosure and tax situations are not the time to gamble on an anonymous “we buy houses” website.

A real local buyer should be able to:

• Explain the process clearly (not pressure you)
• Prove they can close (proof of funds / track record)
• Work cleanly with local attorneys and title companies
• Navigate liens/taxes without chaos or last-minute surprises

How Our Process Works (Simple and Transparent)

1. Quick call to understand your situation and timeline
2. Walkthrough (no repairs required)
3. Clear next steps—we explain options, not just a number
4. Attorney/title coordination to handle payoff details, liens, taxes
5. Close on a realistic timeline (often faster than traditional routes depending on title)

If we’re not the right fit, we’ll tell you that too—because foreclosure decisions are too serious for guesswork.

Recommended Readings!.. click any link below.

• Can I Sell in Foreclosure? (Real Rochester Story)

• How to Stop a Tax Auction in Rochester, NY

• How to Choose the Right Offer, When Time Is Not On Your Side

• How to Sell My House Fast in Rochester, NY

• Not All Cash Buyers Are Legit (Proof Over Promises)

Foreclosure Video Gallery

Bank Foreclosure & Tax Foreclosure Resource Guides. Clear guidance when time, money, and and control are on the line

Foreclosure situations are rarely straightforward. Many homeowners are dealing with both mortgage delinquency and unpaid property taxes at the same time, often without realizing that each follows a different legal process and timeline. Misunderstanding either can lead to unnecessary loss of equity, forced sales, or outcomes that could have been avoided with earlier clarity.

To help homeowners make informed decisions before deadlines eliminate options, we created two local, plain-English resource guides designed specifically for New York homeowners:

Bank Foreclosure Resource Guide 👈 Click to Read

This guide is for homeowners facing missed mortgage payments or bank foreclosure. It explains:

• How bank foreclosure works in New York
• What pre-foreclosure actually means
• Common mistakes that reduce leverage and options
• When selling, loan solutions, or structured exits make sense—and when they do not

Tax Foreclosure & Tax Lien Resource Guide 👈 Click To Read

This guide is for homeowners behind on property taxes or facing municipal enforcement. It covers:

• The difference between tax liens, tax foreclosure, and auction risk
• Why tax timelines can move faster than expected
• What happens when taxes remain unpaid
• Practical ways to stop the clock before control is lost

Both guides are educational, locally informed, and designed to help you understand what is happening before the process makes decisions for you.

Download the Foreclosure Resource Guides
Free. No obligation. Built for Rochester-area homeowners.