2015 New York Laws
CVP - Civil Practice Law & Rules
Article 34 - (Civil Practice Law & Rules) CALENDAR PRACTICE; TRIAL PREFERENCES
R3408 - Mandatory settlement conference in residential foreclosure actions.

Rule  3408. Mandatory settlement conference in residential foreclosure
  actions.  * (a) In any residential foreclosure action involving  a  home
  loan  as  such  term  is defined in section thirteen hundred four of the
  real property actions and proceedings law, in which the defendant  is  a
  resident  of  the  property subject to foreclosure, plaintiff shall file
  proof of service within twenty days of such service, however service  is
  made,  and the court shall hold a mandatory conference within sixty days
  after the date when proof of service upon such defendant is  filed  with
  the county clerk, or on such adjourned date as has been agreed to by the
  parties, for the purpose of holding settlement discussions pertaining to
  the  relative  rights  and obligations of the parties under the mortgage
  loan documents, including, but not limited to  determining  whether  the
  parties  can reach a mutually agreeable resolution to help the defendant
  avoid losing his or  her  home,  and  evaluating  the  potential  for  a
  resolution  in  which  payment  schedules  or amounts may be modified or
  other workout options may be agreed to, and for whatever other  purposes
  the court deems appropriate.
* NB Effective until February 13, 2020
* (a) In any residential foreclosure action involving a high-cost home
  loan consummated between January first, two thousand three and September
  first, two thousand eight, or a subprime or nontraditional home loan, as
  those  terms are defined under section thirteen hundred four of the real
  property actions and proceedings  law,  in  which  the  defendant  is  a
  resident  of the property subject to foreclosure, the court shall hold a
  mandatory conference within sixty days after  the  date  when  proof  of
  service is filed with the county clerk, or on such adjourned date as has
  been  agreed  to  by  the parties, for the purpose of holding settlement
  discussions pertaining to the relative rights  and  obligations  of  the
  parties under the mortgage loan documents, including, but not limited to
  determining   whether   the  parties  can  reach  a  mutually  agreeable
  resolution to help the defendant avoid  losing  his  or  her  home,  and
  evaluating  the potential for a resolution in which payment schedules or
  amounts may be modified or other workout options may be agreed  to,  and
  for whatever other purposes the court deems appropriate.
* NB Effective February 13, 2020
(b)  At  the  initial  conference  held  pursuant to this section, any
  defendant currently appearing pro se, shall be deemed  to  have  made  a
  motion  to  proceed as a poor person under section eleven hundred one of
  this chapter. The court shall determine whether such permission shall be
  granted pursuant to standards set forth in section eleven hundred one of
  this chapter. If  the  court  appoints  defendant  counsel  pursuant  to
  subdivision  (a) of section eleven hundred two of this chapter, it shall
  adjourn the conference to a date certain for appearance of  counsel  and
  settlement  discussions pursuant to subdivision (a) of this section, and
  otherwise shall proceed with the conference.
(c) At any conference held pursuant to  this  section,  the  plaintiff
  shall  appear in person or by counsel, and if appearing by counsel, such
  counsel shall be fully authorized to dispose of the case. The  defendant
  shall  appear in person or by counsel. If the defendant is appearing pro
  se, the court shall advise the defendant of the nature of the action and
  his  or  her  rights  and  responsibilities  as   a   defendant.   Where
  appropriate,  the  court may permit a representative of the plaintiff to
  attend the settlement conference telephonically or by video-conference.
(d) Upon the filing of a request  for  judicial  intervention  in  any
  action  pursuant  to this section, the court shall send either a copy of
  such request or the defendant's name, address and telephone  number  (if
  available)  to  a  housing  counseling  agency  or  agencies  on  a list
  designated by the division of housing  and  community  renewal  for  the

  judicial district in which the defendant resides. Such information shall
  be  used  by  the  designated  housing  counseling  agency  or  agencies
  exclusively for the purpose of making the  homeowner  aware  of  housing
  counseling  and foreclosure prevention services and options available to
  them.
(e) The court shall promptly send a notice to parties advising them of
  the time and place of the settlement  conference,  the  purpose  of  the
  conference  and the requirements of this section. The notice shall be in
  a form prescribed by the office of  court  administration,  or,  at  the
  discretion  of  the  office  of court administration, the administrative
  judge of the judicial district in which the action is pending, and shall
  advise the parties of the  documents  that  they  should  bring  to  the
  conference.  For  the  plaintiff, such documents should include, but are
  not limited to, the payment  history,  an  itemization  of  the  amounts
  needed  to  cure and pay off the loan, and the mortgage and note. If the
  plaintiff is not the owner of the mortgage and note, the plaintiff shall
  provide the name, address and telephone number of the legal owner of the
  mortgage and note. For the defendant, such documents should include, but
  are not limited to, proof of current income such as the two most  recent
  pay  stubs,  most  recent  tax  return  and  most  recent  property  tax
  statements.
(f) Both the plaintiff and defendant shall negotiate in good faith  to
  reach a mutually agreeable resolution, including a loan modification, if
  possible.
(g)  The plaintiff must file a notice of discontinuance and vacatur of
  the lis pendens within one  hundred  fifty  days  after  any  settlement
  agreement or loan modification is fully executed.
(h)  A  party  to  a  foreclosure  action  may  not charge, impose, or
  otherwise require payment from the other party for any  cost,  including
  but  not  limited to attorneys' fees, for appearance at or participation
  in the settlement conference.