Missed the Answer Deadline in Your New York Foreclosure? How to Vacate a Default Judgment

If you missed the answer deadline in your New York foreclosure case, the situation is serious — but it is not necessarily over. A default judgment means the court ruled for the lender because you did not answer or appear in time, yet in New York a default can often be vacated (undone), putting you back in the case with the right to defend. The vehicle is an Order to Show Cause (OSC) to vacate under CPLR § 5015(a)(1), and there is a clear legal test for granting it.

The two things you must show — CPLR 5015(a)(1)

Under CPLR § 5015(a)(1), a court may vacate a default if you move within a reasonable time — and no later than the firm one-year outer limit that runs from service of notice of entry of the judgment — and you demonstrate both:

1. A reasonable excuse for the default — why you didn't answer or appear on time; and
2. A potentially meritorious defense — a real, arguable defense to the foreclosure that a court should hear.

You generally need both prongs. A good excuse with no defense, or a strong defense raised with no excuse for the delay, usually is not enough on its own.

What counts as a 'reasonable excuse'

Courts have broad discretion, and New York has a stated policy preference for deciding cases on the merits rather than by default. Excuses courts have accepted include a serious illness or medical emergency, never having been properly served, law-office failure (when an attorney's error caused the default), or excusable confusion during settlement-conference negotiations. The excuse should be specific and, where possible, documented (for example, medical records for an illness). Vague or unsupported excuses are routinely rejected.

What counts as a 'meritorious defense'

This is where New York's strict foreclosure rules do the heavy lifting. A potentially meritorious defense can include:

• Improper service — you were never validly served, which can also support vacatur under CPLR 5015(a)(4) (lack of jurisdiction) entirely apart from the excuse/merit test.
• Defective RPAPL § 1304 notice — the 90-day notice was missing, late, wrongly formatted, or not mailed as required.
• Lack of standing — the plaintiff did not own or hold the note when it filed suit.
• An inflated or unsupported amount — the sum the lender obtained by default overstates what is actually owed.
• Statute of limitations — the action was time-barred, an issue strengthened for homeowners by the 2022 FAPA.

Ask for a stay of the sale in the same motion

If a sale is scheduled, the OSC should also request a temporary stay halting the auction until the court decides the motion to vacate. A judge can sign that stay when signing the OSC — which is why getting the papers in front of the court before the sale date is critical. This combined move (vacate + stay) is the heart of the Shelter Cove workflow, and it is the same structure HWS prepares as a court-ready draft.

What goes into the motion

1. An Order to Show Cause with the proposed stay language.
2. An affidavit from you setting out the reasonable excuse, with exhibits (e.g., medical proof).
3. An affirmation/memo laying out the meritorious defense(s) with the supporting facts and statutes.
4. A proposed Answer attached, so the court can see exactly what defenses you would raise if reinstated.
5. Proof of service of the motion on the lender's counsel.

Move quickly — time is a requirement, not a suggestion

The 'reasonable time' requirement means delay itself can sink an otherwise-good motion. The day you learn of a default judgment is the day to start. If a sale is also scheduled, treat it as an emergency and build the stay request into the same OSC.