Under New York General Business Law §265-a — the Home Equity Theft Prevention Act — homeowners in default or pre-foreclosure who sign an agreement to sell to an investor have an unconditional five-day right to cancel.
The five days run from the date you sign. The buyer is required to give you written notice of the cancellation right in plain language. If they don't, the agreement is voidable for a much longer period.
This protection exists because of past abuses where investors pressured owners into bad deals. Any reputable buyer will explain the right openly, give you time to think, and recommend you speak with an attorney or a HUD-approved housing counselor.
Free housing-counseling help is available from HUD-approved counselors at 1-800-569-4287. If anyone tells you to skip that step, that itself is a warning sign.