- Who sends it
- The court, after the lender files proof that you were served
- What it starts
- A required conference within 60 days after proof of service is filed, where both sides must negotiate in good faith
- Do this first
- Mark the date, gather your income papers, and call HomeownerHelpNY for a free lawyer or counselor to come with you
What this notice is in New York
CPLR 3408 requires a settlement conference in a foreclosure of a home loan where you live in the home. The lender must file proof that you were served within 20 days of serving you, and the court must hold the conference within 60 days after that proof is filed. The court then promptly sends you notice of the time, place and purpose of the conference and what you need to bring.
New York does not call this mediation, but it works much like it. A judge, court attorney or referee runs it. The court also sends your information to a housing counseling agency for your area. Read more on our New York foreclosure mediation page.
What it does and does not mean
- It is a chance to settle, not a trial. Options include a loan modification, short sale, deed in lieu or other workout.
- Both sides must negotiate in good faith. If the lender does not, the court must at least stop interest, costs and fees from building up during the delay it caused, and it can order a civil penalty of up to $25,000.
- Turning down an offer is not bad faith by itself.
- Neither side can charge the other any cost, including lawyer fees, for attending.
- Most motions in the case are put on hold while the conference process continues. That does not cancel your duty to answer.
Deadlines this notice affects
If you have not answered the complaint by the first conference, CPLR 3408(m) presumes you had a reasonable excuse. You can serve and file an answer within 30 days of your first appearance at the conference without losing your defenses, and any default is vacated when you file. Count those 30 days from the day you first appear.
If you come without a lawyer, the law treats you as asking to proceed as a poor person, and if the court appoints a lawyer it moves the conference to a set date so your lawyer can appear. Both sides must come in person or by lawyer, with full authority to settle, unless the court allows phone or video.
What to bring and what to do this week
- Call HomeownerHelpNY at 1-855-HOME-456. The Attorney General's program funds lawyers and counselors who can represent you at the conference for free.
- Gather what CPLR 3408(e) lists for you, where it applies: current tax returns, a list of expenses, property tax information, past loss mitigation applications, benefit letters, and any rental agreements or proof of rental income.
- Expect the lender to bring your payment history, cure and payoff figures, the mortgage and note, and its loss mitigation options.
- Go even if you are not ready. If you cannot attend, call the court right away.
- Keep checking how to stop a foreclosure in New York and our national mediation notice page.
If you settle
If you sign a settlement or loan modification, CPLR 3408(g) says the lender must file papers ending the case and canceling the notice of pendency within 90 days after the agreement is fully signed. Keep a copy of everything you sign.
The rest of the New York process
See how foreclosure works in New York, the timeline, ways to stop it and free help in New York, or read the national guide to this letter.
Common questions
Do I have to apply for a settlement conference in New York?
No. If the case is a home loan foreclosure and you live in the home, the court must schedule it on its own within 60 days after the lender files proof of service, and it mails you the notice.
I missed my answer deadline. Should I still go to the New York settlement conference?
Yes. Under CPLR 3408(m), if you appear at the conference without having answered, you can serve and file an answer within 30 days of that first appearance without losing your defenses.
Can the lender charge me lawyer fees for the conference?
No. CPLR 3408 says no party can charge the other side for any cost, including attorney fees, for appearing at or taking part in the settlement conference.
Other New York letters
- 90-Day Pre-Foreclosure NoticeNew York law makes your lender mail this notice at least 90 days before it can sue to foreclose. It is a warning, not a lawsuit and not an eviction. It lists free housing counselors near you, and the 90 days are your window to work something out before a court case starts.
- Summons and Complaint, with the Help for Homeowners in Foreclosure noticeA summons and complaint starts the foreclosure lawsuit in the New York State Supreme Court in your county. You have 20 or 30 days to answer, depending on how the papers reached you. A separate colored page called Help for Homeowners in Foreclosure must come with them and explains that you can stay in your home during the case.
- Judgment of Foreclosure and SaleA judgment of foreclosure and sale is the judge's order that your home be sold at auction by a referee or the sheriff. Under RPAPL § 1351, the sale must be held within 90 days of the judgment date. You still own the home until the sale, and you can still stop it by paying what is owed or getting a judge to stay it.
- Notice of SaleA New York notice of sale announces the date, time and place of the foreclosure auction. It is published in a local newspaper, usually once a week for 4 weeks. You can still stop the sale up until the home is sold, but every option needs fast action.
- 10-Day Notice to QuitAfter a New York foreclosure sale, the new owner cannot just change the locks. It must show you the deed, serve a 10-day notice to quit, and then win an eviction case in court. Even then, an officer must give you at least 14 days' written notice before the eviction.