New York Courts Lay Out Early Foreclosure Resolution Program
Wednesday, June 25, 2008
The New York State Unified Court System has released a report discussing the many advantages of the new Statewide Foreclosure Conference Program—a pilot program that aims to get borrowers and lenders on the same page before a foreclosure action is officially filed with the court.
The initiative, which includes the signatures of the Chief Judge of the State of New York and the Chief Administrative Judge, was created when New York judges noticed an influx of foreclosures that were costing borrowers their homes, lenders a lot of funding and the courts a great deal of time in dealing with heavy caseloads.
As part of the program, plaintiffs will be required when serving a summons to include a clear description of the conference program to borrowers, as well as information on all the resources borrowers will need to resolve their housing crisis. A form that allows borrowers to request an early conference also will be included so borrowers can let the court and lenders know they intend to explore all foreclosure prevention options.
In a description of the new program, The New York State Unified Court System said, “The goal of this program is to encourage lender-borrower negotiations prior to the filing of a foreclosure action, conduct court conferences as early as possible in the case to explore the possibility of a workout or settlement, and failing that, to arrive at a case management plan that helps avoid unnecessary delays.”
A notice from the court also will let borrowers and lenders know that a conference between the two is available within 60 days.
Click here to see a comprehensive list of all the steps included in the plan. Kerri Panchuk
The initiative, which includes the signatures of the Chief Judge of the State of New York and the Chief Administrative Judge, was created when New York judges noticed an influx of foreclosures that were costing borrowers their homes, lenders a lot of funding and the courts a great deal of time in dealing with heavy caseloads.
As part of the program, plaintiffs will be required when serving a summons to include a clear description of the conference program to borrowers, as well as information on all the resources borrowers will need to resolve their housing crisis. A form that allows borrowers to request an early conference also will be included so borrowers can let the court and lenders know they intend to explore all foreclosure prevention options.
In a description of the new program, The New York State Unified Court System said, “The goal of this program is to encourage lender-borrower negotiations prior to the filing of a foreclosure action, conduct court conferences as early as possible in the case to explore the possibility of a workout or settlement, and failing that, to arrive at a case management plan that helps avoid unnecessary delays.”
A notice from the court also will let borrowers and lenders know that a conference between the two is available within 60 days.
Click here to see a comprehensive list of all the steps included in the plan. Kerri Panchuk
