NY A01597

Establishes the "Foreclosure Diversion Act of 2011" to help homeowners avoid foreclosure through counseling and settlement conferences, addressing the housing crisis caused by unaffordable mortgages and interest rate resets.

Requires foreclosing parties to notify mortgagors of foreclosure prevention counseling availability, including a hotline number and list of approved nonprofit counselors, with this information included in all foreclosure notices.

Mandates courts to hold mandatory settlement conferences within 90 days in residential foreclosure actions where the defendant resides in the property, requiring foreclosing party representatives to have full settlement authority.

Allows courts to postpone foreclosures for up to one year (with potential nine-month extension if homeowner completes counseling and settlement conference) to permit parties to negotiate payment schedules and loan modifications.

Establishes that homeowners appearing pro se may be deemed to have moved to proceed as poor persons, waiving court fees and filing fees for foreclosure relief motions; requires assignment of foreclosure cases to the same judge when practicable.