Foreclosure Settlement Conference
Purpose of the Foreclosure Settlement Conference
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 & Prakope, 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 Law Firm of Vaughn, Weber & Prakope, PLLC is here to assist you. Contact us at (516) 858-2620 to arrange a consultation with a foreclosure defense lawyer.