Requesting A Mortgage Settlement Conference: What You Need To Know

If you're facing foreclosure and want to set up a settlement conference with your mortgage lender, you'll need to notify the court of your request within 30 days of receiving the Notice. This can be done by filling out a Settlement Conference Request Form and returning it to the court, or by calling or visiting the court directly. While there is no financial cost to participating in a settlement conference, it's important to prepare for it by figuring out your budget and what you can afford to pay. You must also bring copies of your financial papers, such as pay stubs, benefits information, and mortgage statements, to the conference. During the conference, you'll meet with the bank's attorney under court supervision to discuss settlement options, such as changing loan terms or agreeing to a deed in lieu of foreclosure. It's recommended that you seek legal advice before submitting any forms or attending a conference to ensure you get the best result possible.

Settlement conference request form and process

If your mortgage lender has filed for foreclosure on your home, you may be entitled to a court-ordered settlement conference to negotiate an agreement that could allow you to avoid foreclosure. This is only for homeowners who pay a mortgage. There is no financial cost to you for participating in this settlement conference.

To request a settlement conference, you must notify the Court within 30 days of receiving the Notice. You can do this by filling out the Settlement Conference Request Form and returning it to the Court at the address shown on the Summons. Then, send a copy of the form to the lender's attorney at the address shown on the Summons. Alternatively, you can call the Court at the phone number shown on the Summons or go to the Court in person to request a settlement conference. We recommend that you set aside 1 hour to complete all forms.

After filing your forms, the court should schedule a settlement conference to take place within 25 to 60 days. It is important to prepare for the settlement conference by figuring out your budget and what you can afford to pay. This way, you have the best chance of saving your home. You must bring copies of your financial papers to the conference, including pay stubs, benefits information, a list of monthly expenses, a mortgage statement, proof of any rental income, property tax statements, and an income tax return.

At the conference, you and the plaintiff will discuss settlement options with the court, such as paying the money owed over time, changing loan terms, selling at a short sale, or agreeing to a deed in lieu of foreclosure. If you and the plaintiff reach a settlement, it will be put in writing, signed by all parties, and the case will be closed.

Preparing for the settlement conference

Preparing for a mortgage settlement conference is a crucial step in the process of reaching a resolution. Here are some detailed instructions to help you get ready for the conference:

Understand the Purpose and Process:

Know that the goal of the settlement conference is to negotiate and reach a mutually agreeable resolution to avoid foreclosure. This process is intended to be non-adversarial, with both parties working together in good faith to find a solution. It is a chance for you to meet with your lender and discuss options such as modifying your mortgage to make it more affordable.

Gather Your Documents:

You must bring copies of your financial papers to the conference. This includes pay stubs, benefits information, a list of monthly expenses, mortgage statements, proof of any rental income, property tax statements, income tax returns, and proposals to change your loan terms. Additionally, bring any information about previous attempts to work out a settlement with your lender.

Figure Out Your Budget:

Before the conference, take the time to understand your budget and what you can realistically afford to pay. This step is crucial in determining the options available to you during the negotiations.

Consult with an Attorney:

Consider consulting with an experienced foreclosure defense attorney who can guide and represent you during the conference. They can help you anticipate potential challenges and advocate for your interests. While representing yourself is an option, seeking legal advice can improve your chances of a favourable outcome.

Be Prepared for Negotiations:

Strategic moves during the conference are vital. Be prepared to negotiate and advocate for your desired outcome, whether it is modifying your loan or finding alternatives to foreclosure. Remember that the conference is your opportunity to communicate the issues you are facing as a homeowner.

Arrive Early:

On the day of the conference, arrive at the court early to allow time for security checks. Listen for your name to be called, and be ready to present your case and negotiate in good faith.

Remember, the settlement conference is a chance for you to work towards keeping your home. By preparing thoroughly and seeking legal advice, you can increase your chances of reaching a favourable resolution.

Settlement options

Settlement conferences are intended to be non-adversarial, with both parties working together in "good faith" to reach a mutually agreeable resolution. The court will give you an information packet containing an information sheet about answering a foreclosure complaint, an answer form, an affidavit of service, a consumer bill of rights, a foreclosure case flow chart, and a list of foreclosure resources.

At the conference, you and the plaintiff will discuss settlement options with the court, such as:

• Paying the money owed over time
• Changing the loan terms
• Selling at a short sale
• Agreeing to a deed in lieu of foreclosure

If you and the plaintiff can agree on a settlement, it will be put in writing, signed by all parties, and the case will be closed. It is important to prepare for the settlement conference by figuring out your budget and what you can afford to pay. This way, you have the best chance of achieving your desired outcome, whether that is an affordable loan modification or staying in your home for as long as possible.

You must bring copies of your financial papers to the conference, including pay stubs, benefits information, a list of monthly expenses, a mortgage statement, proof of any rental income, property tax statements, and income tax returns. Additionally, bring any proposals to change your loan terms and information about previous attempts to reach a settlement.

The role of an attorney

A mortgage attorney plays a crucial role in ensuring your real estate transactions go smoothly and protecting your financial interests. They can help you in several ways, including:

• Reviewing loan documents: A mortgage attorney will review your loan package, including all the documents provided by your lender, to ensure that the terms are clear and fair. They will also check for any hidden pitfalls that may cause issues down the road.
• Negotiating with lenders: If you are facing foreclosure, a mortgage attorney can negotiate with your lender to find a solution, such as modifying the loan, refinancing, or a short sale. They can also help you file a loss mitigation application, which may halt foreclosure proceedings.
• Defending against wrongful foreclosures: A mortgage attorney can ensure that your lender has followed all legal procedures and defend you against any wrongful foreclosure actions.
• Resolving title issues and payment disputes: These disputes often involve complex legal intricacies that a mortgage attorney can help navigate and resolve.
• Reviewing property tax information: They can ensure you are not overpaying or missing any important details regarding property taxes.
• Preparing and presenting closing documents: If you are the lender, your attorney will prepare and present all the necessary closing documents, including the mortgage, truth-in-lending statement, title, bill of sale, and loan application.
• Ensuring compliance with legal requirements: A mortgage attorney will make sure that all documents comply with state and federal laws, protecting your rights throughout the process.

When it comes to settlement conferences, specifically, it is highly recommended to consult with an attorney before submitting any forms to the court. They can guide you through the process, ensuring that you are well-prepared and have the best chance of saving your home. During the conference, a neutral court attorney or referee will preside, and all parties are legally obligated to negotiate in good faith to reach a mutually agreeable resolution. If the lender is not negotiating in good faith, your attorney can help you move the court to take steps to enforce this requirement.

What to expect at the conference

The foreclosure settlement conference is intended to provide homeowners with the opportunity to meet with their lender to work towards a settlement or agreement that allows them to keep their homes. The conference itself is meant to be amicable, or at least non-adversarial, with both parties working towards a mortgage modification.

During the conference, the borrower meets with the bank's attorney under court supervision. The court will give you an information packet containing a range of information and forms, including an information sheet about Answering a Foreclosure Complaint, an Answer Form, an Affidavit of Service, a Consumer Bill of Rights, a Foreclosure Case Flow Chart, and a list of foreclosure resources.

As the defendant, you must bring copies of your financial papers to the conference, including pay stubs, benefits information, a list of monthly expenses, mortgage statements, proof of any rental income, property tax statements, income tax returns, and proposals to change your loan terms. It is important to prepare for the settlement conference by figuring out your budget and what you can afford to pay.

If you and the plaintiff reach a settlement, it will be put in writing and signed by everyone, and the case will be closed. If no agreement is reached, you may be given a new date to continue the settlement conference.

Frequently asked questions