Residential Foreclosure Program:
An Overview for Homeowners
Eligibility
In an effort to streamline the process for homeowners in danger of foreclosure, the court has
established a Residential Foreclosure Program. Homeowners are eligible to participate in this
program if the subject property meets all of the following criteria:
• It is an owner-occupied residence.
• It is a one-to-four family dwelling.
• The mortgage in question was originated between
January 1, 2003 and September 1, 2008.
• The mortgage is a sub-prime, non-traditional, or high-cost loan.
Settlement Conferences
If you meet the above criteria, a Foreclosure Settlement Conference is mandatory provided the case
was commenced on or after September 1, 2008. If your case was commenced before September 1,
2008, you may still participate on a voluntary basis. The plaintiff is required to identify eligible
cases and provide your contact information when filing them with the court. The court will then
schedule the conference within 60 days after you have been served with court papers. Please be
aware that the court conference does not relieve you of your obligation to respond to the plaintiff’s
papers in a timely manner. If you come to the conference without an attorney, you may be entitled
to a court-appointed lawyer.
At the conference, the court will:
• discuss the rights and obligations of the parties
• determine whether the parties can reach a resolution to avoid foreclosure
• evaluate workout/settlement options such as payment schedules or loan modifications
• design a plan to streamline subsequent court proceedings if a settlement cannot be reached
Homeowner Resources
There are many free or low-cost services available for homeowners in distress. Meeting with a
lawyer or financial/housing counseling service will help you:
• better understand your rights and the legal process
• learn what options may be available to save your home
• decide what the best course of action is for you
For comprehensive resources on how to protect your home and avoid foreclosure, as well as a list
of service providers in your area, please visit:
• http://nysdhcr.gov/Programs/ForeclosurePrevention/
• http://www.hud.gov/foreclosure/index.cfm |
