Stage 6: The Settlement Conference

You have now been made aware through the Summons and Complaint that the Bank has started a foreclosure in the Court system. The next step in the process will be the scheduling of a Settlement conference.

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The idea behind the stage

Under New York State law, a Settlement Conference must be held if you are living in your 1-to-4 unit home. The idea behind the Settlement Conference is to protect the homeowner. By now, many homeowners will have already contacted the Bank to work out a solution. However, banks can be incredibly difficult to work with. Homeowners send the same documents to the Bank many times, only to have the Bank tell them they never received them, or that still more documents are needed. Sometimes, the Bank will take a long time to review your documents, and then tell you that the documents are out of date and therefore you need to send updated documents again.

What does this mean for me?

The idea behind the Settlement Conference is to give the homeowner an opportunity to work with the Bank to come to some alternative to foreclosure, with the Court’s help.

• While you are in the Settlement Conference phase of the foreclosure process, the foreclosure essentially is “frozen” in the Court system.

• Therefore, you do not have to worry about showing up at your house to find the locks changed, or a notice saying you must be out of your house in _ days.

What Should I do?

1. You should receive a letter in the mail from the Court with the time, date and place of the Settlement Conference, and the notice will list the documents you should bring.

2. Attend the first scheduled Settlement Conference. If you do not show up at your first scheduled Settlement Conference without contacting the Court, the Court may declare this stage of the foreclosure to be over, and allow the foreclosure to move forward.

   IT IS VITAL THAT YOU ATTEND THE FIRST SCHEDULED SETTLEMENT CONFERENCE!
3. If for some reason you cannot attend the scheduled Settlement Conference, you will need to contact the Court to reschedule.
4. If you have received a Summons and Complaint, but have not received the notice for a Settlement conference.
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   yet, you should call the Court and ask if one is scheduled.

Additional Resources

Settlement Conference Forms Guide Glossary