This page covers New York law and the practice of the New York City Supreme Courts. The settlement conference is the stage of a residential foreclosure built around a possible workout, and it comes with rules that bind the lender as well as the owner. It is one stage of the case described in what happens after you are served with a foreclosure summons in New York. KOR Law LLP's foreclosure defense practice lists settlement conference compliance among the residential matters it handles.
Who gets a mandatory conference?
CPLR 3408(a) applies to a residential foreclosure involving a "home loan," as RPAPL 1304 defines it, where the defendant lives in the property. In those cases the plaintiff must file proof of service within 20 days of serving the papers, and the court must hold the conference within 60 days after that filing, or on an adjourned date the parties agree to. The court mails both sides a notice with the date, time and place and the documents to bring (CPLR 3408(e)). When the request for judicial intervention is filed, the court also sends the homeowner's contact details to a designated housing counseling agency (CPLR 3408(d)).
A home loan is a loan to a natural person, mainly for personal, family or household purposes, secured by a one to four family home or condominium unit in New York that the borrower occupies as a principal dwelling (RPAPL 1304(6)(a)). The same definition decides who must receive New York's 90-day pre-foreclosure notice, so a loan that required that notice also meets the conference's home loan test. What remains is whether the defendant lives in the property.
What happens at the first conference?
The conference is a meeting between you, the plaintiff's representative and a judge, court attorney or court referee. CourtHelp says the court hands out a packet with an answer form, the Consumer Bill of Rights and a list of foreclosure resources. In Brooklyn, an appearing homeowner also files a notice of appearance on the court's form, with an address, phone numbers and email address (Kings County Foreclosure Settlement Part rule 3).
If you have not answered yet, the court must advise you that you need to, explain what an answer requires, warn that defenses may be lost without one, and point you to foreclosure prevention resources (CPLR 3408(l)). A defendant who appears at the conference after missing the answer deadline is presumed to have a reasonable excuse and may serve an answer within 30 days of that first appearance, with no substantive defenses waived (CPLR 3408(m)). Our page on how long you have to answer a foreclosure complaint in New York explains why that answer still matters.
What do both sides have to bring?
| Party | Documents the statute lists |
|---|---|
| Plaintiff (lender or servicer) | Payment history; itemization of the amounts needed to cure and to pay off the loan; the mortgage and note; standard application forms and a description of available loss mitigation options; the name, address and phone number of the legal owner of the loan if the plaintiff is not the owner. If a modification review is pending, a status summary and list of missing items; if a modification was denied, the denial letter and the net present value inputs used; if denied for an investor restriction, the documents showing it, such as a pooling and servicing agreement. |
| Defendant (homeowner) | Where applicable, current income tax returns, expenses, property taxes, earlier loss mitigation applications, benefits information, rental agreements or proof of rental income, and anything else the judge requires. |
The court system's CourtHelp guide adds pay stubs, a list of monthly expenses, mortgage statements and any proposals to change the loan terms, and advises owners to work out a realistic budget before the conference. It also says to go even if you have not prepared.
What does "good faith" require, and what if a side does not negotiate?
Both sides must negotiate in good faith to reach a mutually agreeable resolution, if possible (CPLR 3408(f)). Courts look at the totality of the circumstances, including compliance with court rules and directives, compliance with mortgage servicing laws and investor guidelines, avoiding unreasonable delay, appearing with full settlement authority, not pressing the foreclosure while a loss mitigation application is pending, and giving accurate information. The statute is also clear that simply failing to make an offer, or turning one down, is not enough by itself to show bad faith. Neither side may charge the other for attending or participating in the conference, including attorneys' fees (CPLR 3408(h)). The court can take up good faith on a party's motion or on its own, and a referee or other staff overseeing the conferences may hear the issue and report to the judge (CPLR 3408(i)).
| Finding against | Minimum consequence | Other remedies the court may order |
|---|---|---|
| Plaintiff | Interest, costs and fees are tolled during any undue delay the plaintiff caused | Compel documents; a civil penalty of up to $25,000 payable to the state; actual damages, fees and expenses to the defendant, including attorney fees; other just relief |
| Defendant | The case is removed from the conference calendar | The court weighs equitable factors, including whether the defendant had a lawyer |
If the case settles, the plaintiff must file a notice of discontinuance and vacate the lis pendens within 90 days after the settlement agreement or modification is fully signed (CPLR 3408(g)).
How do conferences run in Brooklyn and Queens?
Each county's Supreme Court sets its own procedures, and the details change what an owner should expect.
- Kings County (Brooklyn). The Foreclosure Office is at 360 Adams Street. Its settlement parts (Foreclosure Pre-Settlement, Foreclosure Settlement Conference Part A and the Foreclosure Screening Settlement Part) sit in Room 361. Its rules require plaintiff's counsel to appear with a work-out package, reasonably current payoff and reinstatement figures, and settlement authority or a direct line to a servicer who has it. A case on a trial modification gets a control date that matches the trial period, and all parties keep appearing until an agreement is signed by all parties and the assigned judge, or the matter is referred to the assigned judge's part (Settlement Part rules 8 and 12). A case is marked off the conference calendar if the defendant fails to appear for two scheduled conferences. The full sequence at 360 Adams Street is in what to expect at Kings County Supreme Court in a foreclosure case.
- Queens County. The Residential Foreclosure Part sits virtually on Microsoft Teams, with Part FC-E on Mondays, Tuesdays and Wednesdays and Part FC on Thursdays and Fridays. Either side may request one adjournment, which is generally granted; later requests are in the court's discretion. The homeowner should be ready to discuss whether the property is a primary residence, what caused the default and whether the owner wants to stay.
Does federal law add protections during the case?
Yes, for loans covered by the federal mortgage servicing rule, and the key date is when the servicer receives a complete loss mitigation application. If that happens after the foreclosure was filed but more than 37 days before a sale, the servicer must decide within 30 days (12 CFR 1024.41(c)), and may not move for a foreclosure judgment or order of sale, or conduct a sale, until the borrower is found ineligible and any appeal is over, rejects the options offered, or fails to perform under an agreement (12 CFR 1024.41(g)). Compliance with servicing rules is also one of the good-faith factors in CPLR 3408(f). The application, its appeal rights and what to do when a servicer mishandles it are covered in whether you can still get a loan modification after a foreclosure case starts.
What if the conference does not produce a settlement?
When talks end without a deal, Brooklyn requires plaintiff's counsel to send a letter stating the good faith basis for ending negotiations (Settlement Part rule 9). If you have answered, the case then moves into discovery and ordinary litigation, where the defenses in your answer are decided. One that comes up often is explained in whether a New York foreclosure can be dismissed because the lender lacked standing. If you never answered within 30 days of the first conference, the plaintiff can seek a default judgment. From there the path leads toward an order of reference, a judgment of foreclosure and sale and an auction; see where and when foreclosure auctions are held in New York City.
What changes the answer for your conference?
- The property is not your home, or the loan was not personal. The conference is tied to a home loan and a defendant who lives in the property (CPLR 3408(a); RPAPL 1304(6)(a)). An investment property or a business-purpose loan falls outside it; see commercial or residential foreclosure in New York: which protections apply to you.
- An LLC or other entity is the borrower. The home loan definition requires a borrower who is a natural person (RPAPL 1304(6)(a)(1)(i)), so a loan made to an entity does not meet it, even if the owner lives in the house. The firm's article on when a commercial mortgage on your home becomes your biggest liability walks through that risk.
- A reverse mortgage after the last borrower's death. If that death triggered the default, there is no mandatory conference unless the borrower's spouse lives in the property, or a successor who owns or claims it by will or inheritance lived there at the time of death (CPLR 3408(a)(2)).
- The lender claims an exemption. In Brooklyn, the clerk may reject an application for an order of reference or judgment that lacks a CPLR 3408 statement of eligibility or exemption, and an exemption claiming the borrower does not live in the house needs an affidavit of investigation (Kings County General Foreclosure Rules 3 and 6).
- You missed the answer deadline. Appearing gives you 30 days from the first conference to answer, and the default is vacated once the answer is served and filed (CPLR 3408(m)).
For example: one Brooklyn conference, from notice to trial modification
For example, imagine a retired couple who live in a two-family house in Brooklyn and rent the upstairs unit. (This is a made-up illustration, not a real client or result.) A process server hands one of them the summons and complaint on March 3, so their 20-day answer period under CPLR 320 ends on March 23, and they miss it. The plaintiff files proof of service on March 20, so the conference must be held by May 19 (CPLR 3408(a)); the court's notice sets it for April 28 in Room 361 at 360 Adams Street.
Because they appear on April 28, they have until May 28 to serve an answer without losing their defenses (CPLR 3408(m)), and they serve one on May 20. They bring tax returns, benefit letters, the upstairs lease and a budget; plaintiff's counsel brings payoff and reinstatement figures and a status summary of the servicer's review. Two conferences later the servicer offers a trial modification, and the case gets a control date matching the trial period. They keep attending until the final modification is signed, and the plaintiff then has 90 days to discontinue the case and vacate the lis pendens (CPLR 3408(g)).
Common mistakes at the settlement conference
- Treating the conference as the answer. CourtHelp is direct: going to the conference does not replace the answer. The extra time runs 30 days from the first conference.
- Staying away from a later date. In Brooklyn, two missed scheduled conferences take the case off the conference calendar (Settlement Part rule 10). Ask for an adjournment ahead of time instead.
- Arriving without the financial papers. The servicer cannot review what it does not have. Bring the CPLR 3408(e) documents and keep copies of everything you hand over.
- Treating a trial plan as the final deal. Brooklyn's rules keep all parties appearing until a signed agreement or a referral to the assigned judge.
- Calling a refusal "bad faith." Turning down an offer, or not making one, does not by itself show bad faith (CPLR 3408(f)). A claim rests on conduct such as delay, missing authority or inaccurate information.
What to do this week
- Find the conference notice and write down the date, time and place, or, in Queens, the Microsoft Teams link. Test your camera before a virtual conference.
- Count your answer deadline. If it has passed, read what happens if you missed the deadline to answer a foreclosure in New York.
- Gather the homeowner documents listed in the table above, plus every earlier modification application with its date.
- Write a realistic monthly budget, as CourtHelp recommends.
- Return the call from the housing counseling agency the court contacted, or reach out to it first.
- Bring the papers on our foreclosure defense consultation checklist to a lawyer before the first conference date.
Frequently asked questions
Can I attend the conference by phone or video?
CPLR 3408(c) lets the court allow either side to attend by telephone or video conference where appropriate. Queens runs its residential settlement calendar on Microsoft Teams, with no in-person appearance required and the camera on during any appearance. Elsewhere, follow the court's notice.
Do I need a lawyer to go to the conference?
Owners can appear on their own, and the court must explain the nature of the case and the owner's rights and responsibilities (CPLR 3408(c)). A self-represented owner is treated as having asked to proceed as a poor person, and if the court appoints counsel, it adjourns the conference so counsel can appear (CPLR 3408(b)). For Brooklyn courts and contacts, see foreclosure and judgment defense for Brooklyn (Kings County) cases.
How many times can a conference be adjourned?
The statute sets no number, and CourtHelp says a conference may be continued a few times. In Queens, each side may request one adjournment, which is generally granted, and further requests are up to the court; adjournments are not granted by telephone.
Can the lender keep pushing the case forward while we negotiate?
Motions by either side are held in abeyance while the conference process is ongoing, except motions about compliance with the conference rule itself (CPLR 3408(n)). Pressing the foreclosure while a loss mitigation application is pending is also a factor in deciding good faith (CPLR 3408(f)).
Can what I say at the conference be used against me?
In Queens, the part rules say what is said and exchanged at the conference is for settlement only and is not an admission, and a self-represented defendant does not waive jurisdictional defenses by appearing. Other counties word their rules differently, so check the rules of the part hearing your case before assuming the same protection.
What happens after we reach a deal?
The settlement is put in writing and signed by everyone, and the 90-day discontinuance rule in CPLR 3408(g) applies. In Brooklyn, forbearance agreements must be filed with the foreclosure clerk within 20 days of signing, and where the homeowner appeared at a conference, a discontinuance must be served on the homeowner or the homeowner's lawyer (General Foreclosure Rule 8).