What is a CPLR 3408 settlement conference?
A CPLR 3408 settlement conference is a mandatory pre-trial mediation in New York foreclosure cases involving owner-occupied homes, where the homeowner, lender, and court-appointed mediator meet to negotiate potential resolutions including loan modification.
Under New York's Civil Practice Law and Rules, Section 3408 mandates a settlement conference in residential foreclosure actions before the case can proceed to trial. This requirement applies specifically to owner-occupied properties, including single-family homes and certain multi-unit buildings where the defendant resides.
The conference brings together the homeowner (defendant), the foreclosing lender or its attorney, and a court-appointed neutral mediator. The mediator's role is to facilitate discussion and help the parties explore whether a resolution is possible short of foreclosure. Common topics include loan modification, forbearance agreements, repayment plans, or other alternatives that might allow the homeowner to keep the property or exit the case on better terms.
This process serves several purposes within the court system. It reduces the volume of foreclosure cases reaching trial, gives homeowners a structured opportunity to negotiate directly with lenders before losing their home, and often surfaces settlement options that might not emerge through standard litigation. Lenders may use the conference to assess a borrower's ability to cure the default or qualify for modification programs.
For homeowners in the Hempstead area facing foreclosure, the CPLR 3408 conference represents a critical juncture where experienced loan modification attorneys can advocate for alternatives to foreclosure.