The short answer
New Jersey's courts run a free foreclosure mediation program for owner-occupied 1–4 family homes. Work with a free HUD-approved counselor and file the court's request form within 60 days of being served to avoid needing a motion. Mediation does not pause the case, so you still file your answer within 35 days.
Who qualifies
- ✓The home is a residential 1–4 family property and your primary residence.
- ✓The foreclosure was filed by a lender or other mortgage holder (not a tax, condo, or HOA lien case, and not a commercial loan).
- ✓Every borrower on the mortgage takes part.
- ✓You are not currently in bankruptcy.
- ✓You work with a free HUD-approved housing counselor, who helps prepare your request and paperwork.
How to apply, step by step
- 1
Call a free HUD-approved counselor
Use HUD’s line (800-569-4287) or the NJ Housing and Mortgage Finance Agency to find a counselor near you. They cost nothing, and the court’s process expects you to work with one.
- 2
File the mediation request early
Get the current Foreclosure Mediation request form, checklist, and financial worksheet from njcourts.gov. The court’s instructions allow a request up to 60 days after you were served with the summons and complaint without special permission, and there is no filing fee. After that, you generally need a motion asking the court to allow it.
- 3
Still answer the complaint
Mediation does not pause the lawsuit. You generally have 35 days from service to file an answer, and requesting mediation does not change that deadline.
- 4
Build your package with the counselor
Proof of income, bank statements, a hardship letter, tax returns, and a realistic monthly budget. A complete package is what turns a session into an offer instead of a follow-up.
- 5
Attend the session prepared
A neutral mediator works with you and the lender’s representative toward a workable outcome. The mediator does not decide the case, and neither side is forced to agree to terms.
What mediation can and cannot do
It can get a decision-maker on the lender's side to look at a complete package with a neutral person keeping the process moving. That is often the difference for homeowners whose modification requests disappeared into a servicer's fax machine.
It cannot force the lender to agree to anything, stop the lawsuit, or replace your answer to the complaint. If the numbers do not support keeping the home, the most valuable thing mediation produces may be time and an orderly exit that protects your equity and credit better than an auction would.
Beware of anyone charging to "get you into mediation." The request, the counselor, and the session are free. Up-front fees for foreclosure rescue services are generally illegal.
Just served, or not sure of your dates?
The deadline calculator works out your 35-day answer date from the day you were served. Count 60 days from that same day for the mediation request window.