Foreclosure mediation through the courts
N.J. Stat. § 2A:50-77
In plain words
New Jersey runs a permanent foreclosure mediation program for homeowners. A court may order mediation when the homeowner files an answer. Mediation is free and puts you at the table with the lender and a trained mediator to look for a solution.
Who is protected
Homeowner-borrowers in a New Jersey residential foreclosure.
When it applies
- Only in New Jersey.
- Only after a notice of default.
- Only if the home is your primary residence.
What you can do
Request mediation early
Ask as soon as you receive the complaint; bring income and hardship papers.
Deadline: Generally within 60 days of receiving the complaint
Open the toolRead your state guide and find free help
Open the state page for the process, deadlines and legal-aid contacts in your state.
Open the tool
Honest limits
- Mediation does not automatically stop the case and does not guarantee a modification.
- This is general education, not legal advice. Laws change and details matter — check the current official text or talk to a legal aid lawyer or HUD-approved housing counselor.
The law
- State lawParticipation in mediation
N.J. Stat. § 2A:50-77
What it says: A court may order mediation when a homeowner-borrower files an answer.
Read the official texthttps://law.justia.com/codes/new-jersey/title-2a/section-2a-50-77/ - State court ruleMediation court rule
N.J. Ct. R. 4:64-1B
What it says: The courts’ foreclosure page explains how to request mediation.
Read the official texthttps://www.njcourts.gov/self-help/foreclosure
Court cases
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Partial winSame topicUS Bank National Ass'n v. Guillaume
US Bank Nat'l Ass'n v. Guillaume, 209 N.J. 449 (2012)
a pre-foreclosure notice of intention must name the actual lender, though the court may cure the defect with a corrected notice rather than dismissal
- Homeowner lostSame topicLage v. Ocwen Loan Servicing LLC
Lage v. Ocwen Loan Servicing LLC, 839 F.3d 1003 (11th Cir. 2016)
a servicer's duty to evaluate a loss-mitigation application depends on its being submitted more than 37 days before the sale date scheduled at that time
- Homeowner lostSame topicGresham v. Wells Fargo Bank, N.A.
Gresham v. Wells Fargo Bank, N.A., 642 F. App'x 355 (5th Cir. 2016) (per curiam) (unpublished)
the federal dual-tracking bar applies only when the servicer receives a complete loss-mitigation application more than 37 days before the foreclosure sale
- Homeowner lostSame topicBoren v. U.S. National Bank Ass'n
Boren v. U.S. Nat'l Bank Ass'n, 807 F.3d 99 (5th Cir. 2015)
a lender may abandon a prior acceleration by giving notice that it seeks less than the full accelerated balance, which restarts the four-year limitations period
- Homeowner lostSame topicWhittier v. Ocwen Loan Servicing, L.L.C.
Whittier v. Ocwen Loan Servicing, L.L.C., 594 F. App'x 833 (5th Cir. 2014) (per curiam) (unpublished)
a RESPA claim against a servicer fails without evidence of actual damages caused by the violation
Related rights
Right to answer the foreclosure complaint (35 days)
N.J. Ct. R. 4:6-1(a)
New Jersey foreclosures go through the Superior Court. After you are served, you have 35 days to file an answer. Filing an answer makes the case “contested,” lets you raise defenses, and lets the court order mediation.
Read this rightRight to cure and reinstate up to final judgment
N.J. Stat. § 2A:50-57a.
You can cure the default, undo the acceleration and reinstate your mortgage any time up to final judgment by paying what is past due plus allowed costs. This works even if the lender never sent the required notice. If you cure late (after the notice deadline), you cannot use this right again for 18 months.
Read this rightThe right to be heard in court, and to speak for yourself
U.S. Const. amend. XIV, § 1Due Process Clause
Due process means that before the government, through a court, takes your property, you must get a meaningful chance to be heard. In federal court, you have a legal right to present your own case without a lawyer. Most state courts also let people represent themselves, under state rules.
Read this rightPause a court case while on military duty
50 U.S.C. § 3932(b)(1)
If you are in military service and get sued, the court must pause the case for at least 90 days if you ask and show that your duty keeps you from appearing. Before a court can enter a default judgment against you, the other side must file a sworn statement saying whether you are in the military, and the court may appoint a lawyer for you.
Read this rightFHA loans: a meeting before foreclosure
24 C.F.R. § 203.604(a)(1)
If you have an FHA-insured mortgage, your lender must meet with you — or make a reasonable effort to arrange a meeting — before three full monthly payments are unpaid and at least 30 days before starting foreclosure. A reasonable effort means at least two verifiable attempts to contact you. HUD now decides how the meeting may be held.
Read this rightFHA loans: the lender must look at ways to avoid foreclosure
24 C.F.R. § 203.605(a)
If you have an FHA-insured mortgage, your lender must review loss-mitigation options every month before four full payments are unpaid, and take the appropriate action. FHA options can include special forbearance, loan modification, a partial claim (an interest-free second loan from HUD to cover arrears), a pre-foreclosure sale, or a deed in lieu.
Read this right