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Foreclosure mediation in New York

New York does not call it mediation, but it requires a settlement conference in most home foreclosure cases. If you live in the home and the loan is a home loan, the court must hold a conference within 60 days after the lender files proof of service, and both sides must negotiate in good faith. The rule is in CPLR 3408, which has no end date.

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Reviewed against New York law and official sources on October 12, 2026. General information, not legal advice.

How foreclosure mediation works in New York, step by step

  1. Who gets a settlement conference

    Residential foreclosure of a home loan where you live

    The conference applies when the loan is a home loan and you live in the home. A reverse mortgage that came due because the last borrower died is covered only if a surviving spouse or a successor who lived there still lives there.

    CPLR 3408(a)

  2. How it starts: automatically

    Within 60 days after proof of service is filed

    You do not have to apply or pay. The lender must file proof of service within 20 days, the court must hold the conference within 60 days after that, and the court mails you the time, place and what to bring.

    CPLR 3408(a)

  3. A housing counselor and a lawyer

    When the case is assigned to a judge

    The court sends your information to a housing counseling agency on the state's list for your area. If you come without a lawyer, you are treated as asking to proceed as a poor person, and if the court appoints counsel it adjourns the conference so your lawyer can appear.

    CPLR 3408(b), (d)

  4. What to bring

    To the first conference

    Bring current tax returns, your expenses, property tax information, prior loss mitigation applications, benefit letters and any rental agreements. The lender must bring your payment history, the note and mortgage, payoff and reinstatement figures, and loss mitigation applications.

    CPLR 3408(e)

  5. Who attends and what it pauses

    Every conference

    Both sides must appear in person or through a lawyer, and each must have full authority to settle. Motions by either side are held while the conference process continues, and neither side can charge the other fees for attending.

    CPLR 3408(c), (h), (n)

  6. Good faith and penalties

    Throughout the process

    If the lender does not negotiate in good faith, the court must at least stop interest, costs and fees from building up for the delay it caused, and it can order documents, a civil penalty up to $25,000, or damages and fees. If you do not negotiate in good faith, your case is taken off the conference calendar.

    CPLR 3408(f), (j), (k)

  7. Possible results

    If you settle

    The conference looks at a loan modification, short sale, deed in lieu or other loss mitigation. If you sign a settlement or modification, the lender must discontinue the case and cancel the notice of pendency within 90 days.

    CPLR 3408(a), (g)

The program in New York

Foreclosure mediation

Program available

New York requires a settlement conference in residential foreclosure cases where the home is a 1 to 4 family residence you live in. The court mails you the date, which is within 60 days after the lender files proof of service and a Request for Judicial Intervention. Both sides must negotiate in good faith, and the court can penalize a lender that does not. Bring pay stubs, tax returns, a budget and your mortgage statement, and go even if you are not prepared. If you have no lawyer, the law treats you as asking to proceed as a poor person, and the court can appoint a lawyer for you.

Official program page

Common questions in New York

I missed the deadline to answer. Should I still go to the New York settlement conference?

Yes. If you appear at the conference after missing the answer deadline, the law presumes you had a reasonable excuse, and you can serve an answer within 30 days of your first appearance without losing your defenses. The court must also explain how to answer.

Can my New York lender add its lawyer's fees for the settlement conference to my loan?

No. CPLR 3408 says no party can charge or require the other side to pay any cost, including attorney's fees, for appearing at or taking part in the settlement conference.

What does New York count as bad faith by a lender at a settlement conference?

The court looks at everything, including whether the lender follows the conference rules and servicing laws, shows up with authority to settle, avoids long delays, gives accurate information, and does not push the foreclosure while your loss mitigation application is pending. Simply turning down an offer is not bad faith by itself.

Step by step

More on foreclosure in New York

Understand the process

What is happening and how much time there is.

Weigh your options

What can stop it, and what happens if it goes ahead.

Get help now

Who to call, and what to do when a sale is scheduled.

Also in New York

Foreclosure mediation (this page)Property tax foreclosure Claim surplus funds Deficiency judgments Letters you may get

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Sources for this page

  1. N.Y. CPLR 5231, Income execution
  2. N.Y. CPLR 211, Actions to be commenced within twenty years
  3. N.Y. RPAPL § 1304, Required prior notices (90-day notice)
  4. N.Y. RPAPL § 1303, Foreclosures; notice ('Help for Homeowners in Foreclosure')
  5. N.Y. RPAPL § 1320, Special summons requirement
  6. N.Y. CPLR 3408, Mandatory settlement conference in residential foreclosure actions
  7. N.Y. CPLR 320, Defendant's appearance
  8. N.Y. CPLR 213, Actions to be commenced within six years
  9. N.Y. RPAPL § 1302-a, Standing defense
  10. N.Y. RPAPL § 1341, Payment into court before or after judgment
  11. N.Y. RPAPL § 1351, Judgment of foreclosure and sale
  12. N.Y. RPAPL § 231, Notice of sale
  13. N.Y. RPAPL § 1354, Distribution of proceeds of sale
  14. N.Y. RPAPL § 1361, Application for surplus
  15. N.Y. RPAPL § 1371, Deficiency judgment
  16. N.Y. RPAPL § 713, Grounds where no landlord-tenant relationship exists
  17. N.Y. RPAPL § 749, Warrant of eviction
  18. N.Y. RPAPL § 756-a, Stay of proceedings involving title or possession (deed theft)
  19. N.Y. Real Property Law § 265-a, Home equity theft prevention
  20. N.Y. Real Property Law § 265-b, Distressed property consulting contracts
  21. Van Dyke v U.S. Bank, N.A., 2025 NY Slip Op 06537 (N.Y. Court of Appeals, Nov. 25, 2025) (FAPA applies retroactively)
  22. NY Courts: Foreclosure Information for Homeowners (settlement conferences)
  23. NY CourtHelp: Foreclosure Case Basics
  24. NY CourtHelp: Answering a Foreclosure Case
  25. NY CourtHelp: Foreclosure Settlement Conferences
  26. NY CourtHelp: Foreclosure Judgments
  27. NY CourtHelp: Deficiency Judgments After Foreclosure
  28. NY CourtHelp: 90 Day Pre-Foreclosure Notice
  29. NY CourtHelp: Common Defenses in a Foreclosure Case
  30. NYS Homes and Community Renewal: Homeowners (HAF closed)
  31. U.S. Treasury: Homeowner Assistance Fund (period of performance ended September 30, 2026)
  32. Governor Hochul: actions to combat deed theft (June 17, 2026)
  33. New York Attorney General: Homeowners (HOPP, Protect Our Homes)
  34. HomeownerHelpNY: Foreclosures