The nationwide foreclosure crisis has affected every state in the country, including New York. In response to the crisis, the New York legislature enacted The Foreclosure Prevention and Responsible Lending Act, which became effective in August, 2008. That newly implemented law seeks to required mandatory settlement conferences in cases that involve high-cost, "sub prime" home loans. The scheduling of a conference in sub-prime mortgage foreclosure cases is intended to encourage a serious evaluation of whether the parties can avoid reach alternative solutions, such as payment schedules and mortgage modifications. The ultimate goal of the legislation is to help homeowners in distress remain in their homes.

Despite the court options that are available to them, the vast majority of New York mistakenly sit back and wait for the foreclosure process to take its course. In a report earlier this month, New York radio station WNYC reported that only 400 homeowners appeared in court for conferences, of the total 5000 that were eligible for the program.

By responding to a lender's foreclosure complaint (through the filing of an answer) homeowners can assert defenses that are often available to them, and gain leverage and opportunities to avoid the loss of their homes. By downloading an answer to a lender's foreclosure complaint, many homeowners discover that they have a variety of options, even if they are behind on their mortgage payments.

By downloading and filing an answer to foreclosure, homeowners protect their rights, and, quite often, avoid the loss of their homes.

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