Short answer
The home must be your primary residence, a one to four family dwelling, in an active residential foreclosure. All borrowers must agree and none can be in bankruptcy. You must work with a housing counselor and request mediation within 60 days of being served. Mediation does not stop the foreclosure.
The seven eligibility points
The Judiciary's How to Apply packet lists the criteria. The loan is a residential mortgage with a foreclosure filed, not a commercial mortgage, a condominium or homeowner association lien, or a lien from delinquent taxes. The request is made within 60 days after service of the summons and complaint. The property is the owner's primary residence and a one to four family dwelling. All mortgage borrowers request mediation. The borrower is not in bankruptcy. And the borrower has a trained foreclosure prevention counselor, reached through the New Jersey Housing and Mortgage Finance Agency at 609-278-7508, at no cost.
How to apply
The packet says to complete the Mediation Request Statement and submit it to the Superior Court Clerk's Office, Attn: Foreclosure Mediation, P.O. Box 971, 25 Market Street, Trenton, New Jersey 08625. Attorneys cannot file by mail and must file electronically through eCourts. You may only file documents for yourself, and the packet says a power of attorney does not let you file for someone else. Keep copies of everything. The court's foreclosure page says free foreclosure mediation is available.
What mediation is and is not
The court describes mediation as a process in which a neutral third party hears your case. The mediator does not decide the case but guides both sides toward an outcome they can accept. The packet is clear that mediation does not stop a foreclosure action, and that the plaintiff can continue to proceed while it is under way. Treat it as a chance to negotiate, not as a pause button. Keep meeting every court deadline.
If you miss the 60 days
The packet says that after 60 days, a homeowner is allowed into the program only by filing a motion in the county where the foreclosure was filed and receiving a court order. It refers readers to a separate court guide on filing a motion before a judge. That is a harder path, and a lawyer or housing counselor can tell you whether it makes sense. Some owners use the time to line up a sale in case mediation does not produce a deal.
When mediation does not work out
If a modification does not come together, a sale may be the cleaner way to end the loan. Kaizen Home Buyers makes cash offers on New Jersey houses as-is, with no repairs and no agent commission. We can give an offer within 24 hours and close in 14 to 30 days or on the date you choose. Call 267-329-0084. A listing with an agent is another possibility if there is enough time. Ask your counselor which path fits your numbers.