Bill > A03874

This bill requires a mandatory settlement conference for foreclosure actions involving cooperative apartment unit loans, where the borrower is a resident of the property. The bill establishes a comprehensive process designed to help borrowers potentially avoid losing their homes by requiring lenders to file a petition with the supreme court when a loan is in default, and mandating a settlement conference within 60 days of service. During this conference, both parties must negotiate in good faith to explore potential resolutions such as loan modifications, payment schedule adjustments, or other workout options. The bill includes detailed provisions about conference requirements, including that both parties must bring specific financial documents, and that borrowers without counsel will be informed of their rights. The court can impose sanctions on either party for failing to negotiate in good faith, which may include tolling interest and fees, imposing civil penalties, or awarding damages. Additionally, the bill provides protections for borrowers by allowing them to file an answer even if they initially missed the deadline and requiring the court to provide information about foreclosure prevention resources. The goal is to create a structured, supportive process that gives borrowers a meaningful opportunity to address potential foreclosure and find alternatives to losing their cooperative apartment.

Justice

https://www.nysenate.gov/legislation/bills/2025/A3874