NY Foreclosure Settlement Conference: What to Expect and What to Bring

If your lender has filed a foreclosure case against your home in New York, one of your most important rights is the foreclosure settlement conference. It is a meeting at the court where you and your lender try to reach a solution that lets you keep your home, or leave it on better terms.

Many homeowners save their homes at this stage. Here is what to expect, what to bring and how to prepare.

What is a foreclosure settlement conference?

New York law requires a mandatory settlement conference in most residential foreclosure cases (Civil Practice Law and Rules § 3408). It applies to home loans on one- to four-family homes where the homeowner lives in the property.

The conference is held at the courthouse, in front of a judge or a court referee. Its purpose is to help both sides agree on an alternative to foreclosure, such as:

• A loan modification that lowers your monthly payment
• A repayment plan or forbearance
• A short sale or deed in lieu of foreclosure if you cannot keep the home

When does the conference happen?

After the lender serves you with the summons and complaint, it must file proof of service with the court within 20 days. The court must then hold the conference within 60 days after that filing, unless both sides agree to a later date.

You should receive a notice with the date, time and location. If you have not received one, call the court clerk in your county.

Your rights at the conference

Both sides must negotiate in good faith. The law requires you and your lender to make a real effort to reach an agreement. Turning down a single offer is not, by itself, bad faith.

The lender must bring key documents. These include your payment history, an itemized amount needed to bring the loan current and to pay it off, a copy of the mortgage and note, and loss mitigation application forms. If a modification was denied, the lender must give the reasons.

There are penalties for a lender acting in bad faith. If the court finds the lender did not negotiate in good faith, it must at least stop interest, costs and fees from building up for the delay the lender caused. The court can also impose a civil penalty of up to $25,000 and award other relief.

You get extra time to answer the complaint. If you go to the conference without having answered the complaint, you have 30 days from your first appearance to file your answer, without losing your defenses.

What to bring to your settlement conference

Bring copies, not originals, and keep a set for yourself:

• A hardship letter explaining when and why you fell behind
• Proof of income, such as recent pay stubs, benefit award letters, or profit and loss statements if you are self-employed
• Your two most recent bank statements for all accounts
• Your two most recent tax returns, signed and dated
• A recent utility bill
• Your most recent mortgage statement and property tax bill
• Every letter from your lender or servicer, including the 90-day notice
• The summons and complaint and any court notices

These are the documents typically needed for a loan modification application (Legal Services of Long Island).

How to prepare

1. Get help early. Free legal services providers and HUD-approved housing counselors across New York help homeowners at settlement conferences. It is strongly recommended to have an attorney or counselor with you.
2. Know your numbers. Write down your monthly household income and expenses so you can show what payment you can afford.
3. Submit a complete application. Send your lender a complete loss mitigation application before the conference if you can, and keep proof that you sent it.
4. Show up. If you do not appear, your case can move forward without you. If you truly cannot attend, contact the court before the date.
5. Take notes. Write down what was said, what documents were requested and the next conference date.

What happens after the conference?

Settlement conferences often take several sessions. If you reach an agreement, such as a trial modification, follow its terms exactly. If no agreement is reached, the case returns to the regular court calendar, and you can still raise legal defenses. Learn about the next steps in our New York foreclosure process timeline.

If keeping the home is not possible, ask about a short sale. Compare your choices in Short Sale vs. Foreclosure in New York.

Get free help preparing for your conference

Abraxas Foundation is a New York nonprofit that helps homeowners prepare for settlement conferences, organize their documents and connect with free legal help. We never charge a fee.

Call (929) 346-5734 or contact us online for a free, confidential review.

Helpful official resources: NY Courts CourtHelp: Foreclosure and NY DFS Foreclosure Consumer Bill of Rights.

This article is general information, not legal advice. Court procedures can change, so speak with an attorney or housing counselor about your case.