What happens during the foreclosure settlement conference?

Typically, the foreclosing attorney will file a request for judicial intervention (the "RJI") which essentially is a request by the moving party to have the court schedule a foreclosure settlement conference in the foreclosure part of the supreme court located in the county where the property is situated.  Once the request is filed and served, the court will schedule a foreclosure conference for the sole purpose of determining if the homeowner will be seeking some type of mortgage assistance from the lender, such as a HAMP mortgage modification or some other workout arrangement.  The court will send notification of the first conference and the date the parties must appear.  Essentially, the foreclosure action is stayed (put in temporary abeyance) during the time the case is in the foreclosure settlement part. At the conference, a court appointed referee will preside over the conference and ask questions regarding the feasibility of a modification and/or workout. If it appears that a workout can be accomplished then the referee will adjourn the conference to permit the parties time to complete the process. If the homeowner does not appear at the conference or the homeowner is unable to enter into a modification or workout, the referee will likely transfer the case out of the foreclosure settlement part, which will end the stay on the foreclosure permitting the bank to continue with its foreclosure. Generally, the conference is not intended to discuss the merits of the bank's foreclosure action, but rather intended to discuss workout options.

Additionally, the court will often inquire as to whether the borrower is residing at the subject property, as to the monthly gross income, and as to the reason for the loan default. If the borrower does not reside at the subject property or does not have sufficient monthly income then the borrower may be disqualified for certain government modification programs.  Sometimes, however, when a borrower is ineligible for a government modification, the bank may have its own "in-house loan modification program" or a forbearance or repayment option that it may offer to the borrower.  Generally, if a borrower is intent on a modification, whether it be through a government program or an in-house modification program, the borrower will want to make sure that he or she provides all documentation and complies with court directives. Always consult with an experienced foreclosure attorney.