Foreclosure Settlement Conferences: What you should know!

On May 7, 2012, in Foreclosure, by John A. Weber IV, ESQ.

What you should know about Foreclosure Settlement Conferences!

Residential foreclosure defendants in New York are entitled to a preliminary foreclosure settlement conference that may enable a speedier and less expensive way of resolving their foreclosure issue than would otherwise be possible. The law requiring the conference – New York Civil Practice Law and Rules section 3408 – is beneficial for foreclosure defendants in a number of ways.

  • First, foreclosure settlement conferences are typically less expensive than trial. Thus a foreclosure settlement conference requirement alone is beneficial. But section 3408 does not simply require a conference – it also requires that parties engage in good-faith negotiation for the purpose of “determining whether the parties can reach a mutually agreeable resolution to help the defendant avoid losing his or her home.” Further, the law requires that parties periodically update the court about the negotiation, allowing courts to evaluate whether negotiations are made in good faith. It is rare that legislation requires parties to make good-faith efforts to reach a resolution that is favorable to the defendant, and foreclosure defendants should take advantage of this requirement.
  • Additionally, the law requires that the settlement conference occur within sixty days of the day proof of service is filed with the court, unless the parties agree to conference on another date. This allows foreclosure defendants to enter negotiations quickly, avoiding long periods of uncertainty that would certainly add stress to an already stressful situation.
  • The law also requires parties to bring certain documents to the conference, gives the court an opportunity to require additional documents, and forbids either party from charging the other for legal expenses associated with the conference. Foreclosure defendants may be able to use the conference period to find out information about their case that may otherwise only be obtained through a potentially expensive discovery process.

Of course, foreclosure defendants may appear at the conference with counsel, which may help them take full advantage of the procedure. The Law Firm of Vaughn and Weber routinely represents clients through all phases of a foreclosure action. If you are facing a foreclosure, and would like to speak with an attorney about the settlement conference, or any other step in the foreclosure process, feel free to call (516) 858-2620 today.

*Contributions to the research and preparation of this blog were made by Jason Mays, J.D. (awaiting admission in NYS).

What happens at a foreclosure settlement conference?

On August 28, 2010, in Foreclosure, by Robbie L. Vaughn, Esq.

The purpose of foreclosure settlement conferences

According to New York law (RPAPL 3408), the purpose of the foreclosure settlement conference includes, but is not limited to, “…determining whether the parties can reach a mutually agreeable resolution to help the defendant avoid losing his or her home, and evaluating the potential for a resolution in which payment schedules or amounts may be modified or other workout options may be agreed to, and for whatever other purposes the court deems appropriate.”

At the foreclosure settlement conference:

  • Both the plaintiff and defendant are required to negotiate in good faith to reach a mutually agreeable resolution, including a loan modification, if possible.
  • The defendant will be required to provide the lender or it’s servicer with financial documentation.
  • The plaintiff will be required to review the documentation to determine if the parties can reach a resolution to avoid foreclosure.
  • On each conference date, there will likely be several dates, each party must report the status of negotiations to the Judge and explain any issues that have arisen.
  • If a settlement agreement or loan modification is achieved, the plaintiff must file a notice of discontinuance and vacatur of the lis pendens within one hundred fifty (150) days after the agreement is fully executed.

IMPORTANT: The scheduling of a foreclosure settlement conference does not relieve you of your obligation to respond to the plaintiff’s summons and complaint in a timely manner (see our earlier post “Foreclosure Summons and Complaint“).

The Law Firm of Vaughn & Weber, PLLC routinely represents homeowners facing foreclosure at settlement conferences.  Typically, we obtain and/or attend foreclosure settlement conferences as part of our defense to the foreclosure action brought against our client.  However, we will represent homeowners at just the foreclosure settlement conference.

As always, The Foreclosure Defense Law Firm of VAUGHN & WEBER, PLLC is here to assist you.  We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY 11501. Contact us at (516) 858-2620 to arrange a consultation with a foreclosure defense lawyer.

Please visit our Foreclosure category to learn more about foreclosure issues.

Foreclosure Settlement Conference Eligibility

On August 14, 2010, in Foreclosure, by Robbie L. Vaughn, Esq.

Am I Eligible For A Foreclosure Settlement Conference?

Generally, you are eligible for a Mandatory Foreclosure Settlement Conference if:

  • The foreclosure action was commenced against you after February 13, 2010, OR
  • Your case was commenced between September 1, 2008 and February 13, 2010, and involves a subprime, high-cost or nontraditional loan, and
  • The property is 1-4 family home or condominium, and
  • You occupy the property as your principal place of residence.

The court is required to schedule the mandatory foreclosure settlement conference within 60 days after you have been served with the foreclosure summons and complaint. Even where a settlement conference is not mandatory, you or your attorney may request one.

IMPORTANT: Please note that the scheduling of a foreclosure settlement conference does not relieve you of your obligation to respond to the plaintiff’s summons and complaint in a timely manner (see our earlier post “Foreclosure Summons and Complaint“).

As always, The Long Island Foreclosure Defense Law Firm of VAUGHN & WEBER, PLLC is here to assist you.  We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY 11501.  Contact us at (516) 858-2620 to arrange a consultation with a foreclosure defense lawyer.

Please visit our Foreclosure category to learn more about foreclosure issues.

Foreclosure Settlement Conference Notice

On June 10, 2010, in Foreclosure, by Robbie L. Vaughn, Esq.

I received a notice to attend a foreclosure settlement conference, what should I do?

Go!

If you are facing foreclosure and the court has scheduled  a foreclosure settlement conference for you, you should attend or hire an attorney, probably for a lot less than you may think, to attend on your behalf or with you.

The foreclosure settlement conference provides the homeowner with an opportunity to negotiate a loan modification with their lender. If you are interested in saving your home from foreclosure, the foreclosure settlement conference may be your last chance to do so.

As always, The Foreclosure Defense Law Firm of VAUGHN & WEBER, PLLC is here to assist you.  We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NYContact us at (516) 858-2620 to speak with a foreclosure defense attorney.

Please visit our Foreclosure category to learn more about foreclosure issues.

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. This website is Attorney Advertising. It does not form an attorney-client relationship. We are a debt relief agency and a law firm that helps people file for bankruptcy relief under the U.S. Bankruptcy Code – Title 11. Prior results do not guarantee a similar outcome. Proudly assisting residents of Long Island, Nassau county, Suffolk county, New York City, Queens, Brooklyn, Bronx, Staten Island, Manhattan