New Jersey foreclosure mediation
New Jersey runs a court Foreclosure Mediation Program for homeowners who live in the home being foreclosed. It is free, the homeowner can ask for it within a short window, and the court can also order it once an answer is filed.
Free to the homeowner
Request within 60 days of the summons and complaint
Not a law firm
Start here
A supervised conversation
with your lender.
Most people expect a courtroom and a decision. Mediation is neither. It is a structured meeting whose purpose is to find out whether the foreclosure can be resolved another way.
The Judiciary created the program in 2009 and the Legislature wrote it into law in 2019. The homeowner pays no fee to take part. The lender has to attend, in person or by telephone, through someone with authority to consider alternatives to foreclosure.
You should have heard about it twice already: the law requires that the homeowner receive written notice of the program with the Notice of Intention to Foreclose, and again when the foreclosure complaint is filed, in English and Spanish.
It is not a pause button
The mediation statute does not itself stay the foreclosure. Your 35-day deadline to answer the complaint still runs.
How it works
Qualify, request, prepare.
Three things decide whether you get into mediation: whether the home qualifies, whether you ask in time, and whether you are working with a counselor.
- 01
Check eligibility
You must own and live in a one- to four-unit home that is your primary residence, have been served with a foreclosure summons and complaint, and not be in bankruptcy. Everyone on the note must agree to take part.
Owner-occupants only
- 02
Request it in time
A homeowner may request mediation within 60 days of receiving the summons and complaint. The court may also order mediation when the homeowner files an answer.
60 days from the summons and complaint
- 03
Work with a counselor
Since November 1, 2019, a homeowner must work with a trained foreclosure-prevention counselor, who certifies that the homeowner is cooperating. That counseling is funded at no cost through NJHMFA’s network of HUD-certified agencies.
NJHMFA: 609-278-7508
In detail
What mediation can and cannot do.
Mediation creates a forum and an obligation to show up. It does not create an entitlement to any particular outcome.
The lender has to take part
The law requires the lender to attend, in person or by telephone, through a person with the authority to consider alternatives to foreclosure. That matters, because a conversation with someone who cannot agree to anything rarely goes anywhere.
Keep a dated record of every document you send and how you sent it. If a package goes missing, that record is what you and your counselor or attorney will work from.
What to gather
Financial documents are what these sessions run on. An incomplete package is a common reason nothing moves. Your counselor can tell you what the program asks for; these are the usual starting points.
- Proof of current income for everyone contributing to the household
- Recent tax returns and bank statements
- A monthly budget of what comes in and what goes out
- A short written explanation of the hardship and whether it has ended
- Your mortgage statements and any correspondence with the servicer
- The summons and complaint, the mediation notice, and the Notice of Intention to Foreclose
Mediation and the court case
Mediation runs alongside the foreclosure case. The mediation statute does not itself stop the case, so the 35-day answer deadline and everything after it still apply. Filing a contesting answer sends the case to a General Equity judge in your county; not answering leaves it with the Office of Foreclosure.
Separately, federal servicing rules limit what a servicer may do while a complete loss-mitigation application is pending, if it was submitted more than 37 days before a scheduled sale.
Do you need a lawyer for it?
You are allowed to take part without one, and the counselor requirement means you will not be doing it alone. The lender will be represented, though, and the questions that decide these sessions are often technical: whether an application is complete, whether a denial was properly explained, whether the servicer’s figures are right.
An attorney can also look at the case itself, such as whether the Notice of Intention to Foreclose was proper, which mediation alone will not raise.
What mediation cannot do
A mediator cannot order a lender to modify a loan. Only the lender or servicer can approve a modification, and no attorney can promise one.
Anyone who tells you a modification is guaranteed because you are in mediation is promising something they do not control.
This page describes general New Jersey foreclosure procedure. It is not legal advice, and procedure has exceptions, county practice and case law that no general page can apply to an individual situation. NewJerseyForeclosureHelp.com is not a law firm, a lender, or a government agency. If a deadline, court date, or sale date is approaching, speak with an attorney promptly.
Common questions
About foreclosure mediation.
Is New Jersey foreclosure mediation free?
Yes. The court Foreclosure Mediation Program charges the homeowner no fee to take part. The required housing counseling is also funded at no cost through NJHMFA’s network of HUD-certified agencies.
Who is eligible for foreclosure mediation?
An owner-occupant of a one- to four-unit home that is the primary residence, who has been served with a foreclosure summons and complaint and is not in bankruptcy. All borrowers on the note must agree to take part.
How long do I have to ask for mediation?
A homeowner may request mediation within 60 days of receiving the summons and complaint. The court may also order mediation when the homeowner files an answer.
Does mediation stop the foreclosure?
The mediation statute does not itself stay the foreclosure. The 35-day deadline to answer the complaint still applies, so treat mediation and the court case as running side by side.
Will mediation get me a loan modification?
Not necessarily. The lender must attend through someone with authority to consider alternatives to foreclosure, but only the lender or servicer can approve a modification, and no one can promise one.
Statutes and sources behind this guide
- F7: The homeowner must receive written notice of the Foreclosure Mediation Program with the notice of intention and again when the complaint is filed, in English and Spanish. (P.L.2019, c.64), read 2026-09-23
- F12: The homeowner has **35 days** from service of the summons and complaint to file an answer. (R. 4:6-1), read 2026-09-23
- F14: If no answer is filed, or the answer does not contest the mortgage, the case is uncontested and stays with the **Office of Foreclosure** (Superior Court Clerk's Office, Trenton). The application for final judgment is filed there and the Office of Foreclosure may recommend entry of judgment; there is no judicial hearing on the merits. (R. 4:64-1), read 2026-09-23
- F15: A contesting answer sends the case to a Chancery Division, General Equity judge in the county where the property is located., read 2026-09-23
- F17: New Jersey runs a court Foreclosure Mediation Program (created by the Judiciary in 2009, codified in 2019). It is **free** to the homeowner. (P.L.2019, c.64 (N.J.S.A. 2A:50-74 et seq.); R. 4:64-1B), read 2026-09-23
- F18: Eligible: an owner-occupant of a one- to four-unit residential property that is the primary residence, who has been served with a foreclosure summons and complaint and is not in bankruptcy. All borrowers on the note must agree to take part. (P.L.2019, c.64), read 2026-09-23
- F19: The homeowner may request mediation within **60 days** of receiving the summons and complaint; the court may also order mediation when the homeowner files an answer. (P.L.2019, c.64), read 2026-09-23
- F20: Since 2019-11-01, a homeowner must work with a trained foreclosure-prevention counselor, who certifies the homeowner's cooperation, to participate. NJHMFA funds this counseling at no cost through a network of HUD-certified agencies in every county (NJHMFA 609-278-7508). (P.L.2019, c.64), read 2026-09-23
- F21: The lender must attend mediation in person or by telephone through a person with authority to consider alternatives to foreclosure. The statute does not itself stay the foreclosure during mediation. (P.L.2019, c.64), read 2026-09-23
- F41: If a borrower submits a complete loss-mitigation application more than 37 days before a scheduled foreclosure sale, the servicer may not move for judgment or order of sale, or conduct the sale, while the application is pending. (12 CFR § 1024.41(g)), read 2026-09-23
- F43: Only the lender or servicer can approve a loan modification. No attorney can promise one. (Positioning (`app/src/lib/legal.ts`)), read 2026-09-23
- F44: Free foreclosure-prevention counseling is available to New Jersey homeowners through NJHMFA's network of HUD-certified agencies., read 2026-09-23
Statutory claims on this page were checked against published New Jersey law and court guidance on 2026-09-23 and are recorded, fact by fact, in the site's evidence file. Statutes change; the date is the date of the check.
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