NJ Foreclosure Help Programs in 2026: What's Open and What Ended

Why you need a current list

Search for foreclosure help in New Jersey and you will still find pages for programs that closed years ago. Some are stale news stories. Some are sales pitches from people who know a program name makes a mailer look official. This page sorts what is open, what ended, and where to check the current status yourself on an official site. We only call a program open or closed when an official source says so. Everything here was checked on September 24, 2026, and programs change, so confirm before you act.

What has ended

ERMA (New Jersey's Homeowner Assistance Fund). The Emergency Rescue Mortgage Assistance program, run by the New Jersey Housing and Mortgage Finance Agency (NJHMFA) with federal pandemic money, offered up to $75,000 per household. Its official page now says it is no longer accepting applications. Past applicants with questions can call 855-647-7700. If anyone offers to "get you into ERMA" today, that is a red flag.

VA's VASP program. The VA Servicing Purchase program stopped accepting new submissions on May 1, 2025, according to VA Circular 26-25-2. (A new VA option replaced it; see below.)

FHA's COVID-19 recovery options. HUD's Mortgagee Letter 2025-12 says the COVID-19 Recovery options and FHA-HAMP expired on September 30, 2025, with a revised permanent menu in effect from October 1, 2025.

Free housing counseling: HUD and NJHMFA

HUD-approved housing counselors are still the best first call for most people. HUD describes its counseling as free or very low cost, and counselors help build the application your servicer reviews: budget, hardship letter, income documents. Find one at 800-569-4287 (TTY 800-877-8339). Our guide to a first meeting with a HUD counselor explains what to bring.

NJHMFA also runs the Foreclosure Mediation Assistance Program, which state law permanently expanded on January 24, 2022 to include counseling before a foreclosure is even filed. NJHMFA says the services are at no cost. Pre-foreclosure counseling is generally for owner-occupants of one- to four-unit homes whose mortgage is in default or at risk of default; investors and non-occupant owners are not eligible. Check current details at nj.gov/dca/hmfa/homeowners/foreclosure-prevention.

Court foreclosure mediation

Once a foreclosure complaint is filed, the New Jersey Judiciary's Foreclosure Mediation Program offers a free, court-supervised meeting with your lender. The request is generally made within 60 days of being served, using the court's mediation form, checklist and financial worksheet. According to NJHMFA, you generally must live in the home, all borrowers on the note must agree to take part, and an active bankruptcy disqualifies you. A court can allow late requests in some cases, but do not count on it. Mediation does not pause the case on its own, so keep working on other options while it is scheduled. Our mediation guide covers the steps, and the official forms are at njcourts.gov/self-help/foreclosure.

Free legal help: Legal Services of New Jersey

Legal Services of New Jersey offers free legal help to people who meet its income rules. Call the hotline at 1-888-576-5529 or apply online at lsnjlawhotline.org. If you do not qualify, the county bar association referral services listed by the courts can connect you with a private foreclosure lawyer, and many offer a low-cost first consultation.

Your loan type decides your workout menu

FHA loans. HUD lists these options: repayment plans, forbearance, a standalone partial claim (past-due amounts moved into an interest-free second lien paid when you sell or refinance), a loan modification, a modification combined with a partial claim, and a payment supplement that lowers payments for three years. Exits include a pre-foreclosure sale and a deed in lieu. Generally you can receive only one permanent home retention option in any 24 months, unless you were hit by a presidentially declared disaster. FHA Resource Center: 1-800-225-5342. More in our FHA partial claim post.

VA loans. VA launched a new Partial Claim Program on June 15, 2026, authorized by a 2025 law. After a three-month trial payment plan, VA works with your servicer to pay the missed payments, and you repay VA when you sell or pay off the loan. VA says servicers have until November 28, 2026 to put it in place, so ask your servicer directly, and call VA loan technicians at 877-827-3702, option 6, if you get stuck. More in our VA loan post.

Fannie Mae and Freddie Mac loans. Their menus include forbearance, repayment plans, payment deferral (Fannie Mae describes moving up to six missed payments to the end of the loan) and the Flex Modification. Both companies have free online loan lookup tools to see if they own your loan.

Private or portfolio loans follow whatever the owner allows, which is why the first step is always asking your servicer who owns or insures your loan.

At the sheriff sale: the Community Wealth Preservation Program

If a case reaches auction, New Jersey's Community Wealth Preservation Program lets certain bidders, including the homeowner, next of kin, tenants, nonprofit community development groups, and buyers who will live there for at least 84 months, bid with a 3.5% deposit and up to 90 business days to pay the balance, as printed in county sale notices. It is a buying option, not a grant, and the rules have real requirements. Our separate guide covers it in depth.

Local programs, and how to check any program yourself

Some counties and cities have run their own homeowner assistance over the years, but we could not confirm any county or city mortgage-payment program that is open today. The quickest way to learn about local money is to ask a HUD-approved counselor who serves your county; they track these.

For any program, check the official site (nj.gov, njcourts.gov, hud.gov, va.gov, or the Fannie Mae or Freddie Mac site) rather than a mailer or ad. Legitimate programs do not charge upfront fees and do not guarantee outcomes. An illustrative composite, not a real case: a homeowner gets a letter naming "the state mortgage rescue fund" and asking for a $1,500 processing fee. The official ERMA page says the program closed, and state counseling is free. That five-minute check saved the fee. This article is general education, not legal advice.