By David Chapman · September 24, 2026 · 5 min read
New Jersey is one of a handful of states with a court-run foreclosure mediation program, and it is free. If you own and live in the home being foreclosed, it is usually the first thing to request after you are served. Here is how it works and how to use it well.
Who qualifies
- You own the property and it is your primary residence.
- It is a one-to-four family home.
- You are not currently in bankruptcy.
Investment properties and vacant homes do not qualify.
The 60-day deadline
You must file the mediation request with the court within 60 days of being served with the foreclosure complaint. After 60 days you can still ask, but only by motion showing exceptional circumstances, and the court does not have to say yes. The request form is available from the court and from housing counselors; David files it for clients as part of the initial response to the complaint.
What happens in mediation
- A housing counselor. A HUD-certified counselor helps you assemble a complete financial package: income, expenses, hardship letter, and the lender's required forms.
- A mediator. A neutral appointed by the court schedules a session with you (and your attorney) and the lender's representative, who must have authority to make decisions.
- The lender must engage. Unlike a phone call to the servicer's 800 number, the lender is expected to review your package and respond in the session. Documents cannot "get lost."
- An agreement, or not. Most successful mediations end with a trial modification, a repayment plan, or an agreed short sale timeline. If no agreement is reached, the foreclosure resumes where it left off.
What mediation does to the timeline
The lender generally cannot move to final judgment while the case is in the mediation program, which means the sale date cannot be set. That pause is often the single most valuable thing the program provides, because it gives a complete modification application time to be reviewed.
Why bring an attorney
The program provides counselors, and in some cases NJHMFA-contracted attorneys, at no charge. Homeowners with their own attorney tend to do better because the attorney can raise legal defenses in the same conversation: a defective Notice of Intention to Foreclose, standing problems, or servicing violations all change the lender's willingness to deal. David prepares the package, attends the session, and makes sure any agreement is in writing before you rely on it.
If you missed the deadline
Call anyway. Late requests are granted in some circumstances, and the other tools in a foreclosure defense case do not depend on mediation.
Attorney Advertising. This article is general information, not legal advice. Laws vary by state and change over time; talk to an attorney about your situation.