Right to a mandatory settlement conference
N.Y. C.P.L.R. 3408(a)
In plain words
If you live in the home and the loan is a home loan, the court must hold a settlement conference within 60 days after the lender files proof that you were served. The goal is to look for a solution such as a loan modification. Both sides must negotiate in good faith.
Who is protected
Homeowner-defendants who live in the property in a residential foreclosure on a home loan.
When it applies
- Only in New York.
- Only after a notice of default.
- Only if the home is your primary residence.
What you can do
Prepare for the conference
Bring income, expense and hardship documents so a modification can be reviewed.
Deadline: The conference is set within 60 days after proof of service is filed
Open the toolRead your state guide and find free help
Open the state page for the process, deadlines and legal-aid contacts in your state.
Open the tool
Honest limits
- The conference does not guarantee a modification or other settlement.
- You should still file an answer on time; the conference does not replace it.
- This is general education, not legal advice. Laws change and details matter — check the current official text or talk to a legal aid lawyer or HUD-approved housing counselor.
The law
- State court ruleMandatory settlement conference
N.Y. C.P.L.R. 3408(a)
Exact part: (a)
What it says: The court must hold a mandatory conference within 60 days after proof of service is filed in a residential foreclosure on a home loan.
Read the official texthttps://www.nysenate.gov/legislation/laws/CVP/3408
Court cases
- Homeowner lostSame topicFreedom Mortgage Corp. v. Engel
Freedom Mortg. Corp. v. Engel, 37 N.Y.3d 1 (2021)
a noteholder's voluntary discontinuance of a foreclosure action that accelerated the debt revokes the acceleration
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner wonSame topicBank of New York v. Silverberg
Bank of N.Y. v. Silverberg, 86 A.D.3d 274 (N.Y. App. Div. 2011)
a plaintiff whose only claim to the loan is an assignment from MERS, which never held the note, lacks standing to foreclose in New York
- Homeowner lostSame topicLage v. Ocwen Loan Servicing LLC
Lage v. Ocwen Loan Servicing LLC, 839 F.3d 1003 (11th Cir. 2016)
a servicer's duty to evaluate a loss-mitigation application depends on its being submitted more than 37 days before the sale date scheduled at that time
- Homeowner lostSame topicGresham v. Wells Fargo Bank, N.A.
Gresham v. Wells Fargo Bank, N.A., 642 F. App'x 355 (5th Cir. 2016) (per curiam) (unpublished)
the federal dual-tracking bar applies only when the servicer receives a complete loss-mitigation application more than 37 days before the foreclosure sale
- Homeowner lostSame topicBoren v. U.S. National Bank Ass'n
Boren v. U.S. Nat'l Bank Ass'n, 807 F.3d 99 (5th Cir. 2015)
a lender may abandon a prior acceleration by giving notice that it seeks less than the full accelerated balance, which restarts the four-year limitations period
Related rights
Right to answer the foreclosure lawsuit and be heard
N.Y. C.P.L.R. 320(a)
New York foreclosures go through court. After you are served, you must appear (usually by filing an answer) within 20 days if the papers were handed to you, or 30 days if served another way. Answering lets you raise defenses such as a missing 90-day notice or the lender’s lack of standing.
Read this rightRight to a 90-day warning before a foreclosure lawsuit
N.Y. Real Prop. Acts. Law § 1304(1)
For a home loan on the home you live in, the lender or servicer must send you a special notice at least 90 days before it sues to foreclose. The notice must list free housing counseling agencies near you. A foreclosure case filed without a proper 90-day notice can be dismissed.
Read this rightThe right to be heard in court, and to speak for yourself
U.S. Const. amend. XIV, § 1Due Process Clause
Due process means that before the government, through a court, takes your property, you must get a meaningful chance to be heard. In federal court, you have a legal right to present your own case without a lawyer. Most state courts also let people represent themselves, under state rules.
Read this rightPause a court case while on military duty
50 U.S.C. § 3932(b)(1)
If you are in military service and get sued, the court must pause the case for at least 90 days if you ask and show that your duty keeps you from appearing. Before a court can enter a default judgment against you, the other side must file a sworn statement saying whether you are in the military, and the court may appoint a lawyer for you.
Read this rightFHA loans: a meeting before foreclosure
24 C.F.R. § 203.604(a)(1)
If you have an FHA-insured mortgage, your lender must meet with you — or make a reasonable effort to arrange a meeting — before three full monthly payments are unpaid and at least 30 days before starting foreclosure. A reasonable effort means at least two verifiable attempts to contact you. HUD now decides how the meeting may be held.
Read this rightFHA loans: the lender must look at ways to avoid foreclosure
24 C.F.R. § 203.605(a)
If you have an FHA-insured mortgage, your lender must review loss-mitigation options every month before four full payments are unpaid, and take the appropriate action. FHA options can include special forbearance, loan modification, a partial claim (an interest-free second loan from HUD to cover arrears), a pre-foreclosure sale, or a deed in lieu.
Read this right