NY A08236

Establishes the "Foreclosure Diversion Act of 2009" to provide counseling and assistance to homeowners facing foreclosure on residential properties in New York State.

Requires mortgage lenders to notify homeowners in foreclosure of available counseling services through a state hotline and provide contact information for non-profit assistance providers.

Mandates mandatory settlement conferences within 90 days of service in residential foreclosure actions where the defendant occupies the property, with the lender's representative required to have full settlement authority.

Allows courts to postpone foreclosure for up to one year if the homeowner completes counseling with an approved non-profit provider and participates in a settlement conference, plus an additional nine-month period to negotiate resolution.

Requires homeowners seeking postponement to establish prima facie case demonstrating they are natural persons, the property is their principal residence, they own no other property, and the loan is for personal, family, or household purposes; court fees are waived for such actions.