- Who sends it
- Your lender, with the Notice of Intention to Foreclose and again when the complaint is filed
- What it starts
- 60 days after you receive the summons and complaint to apply for mediation without a court order
- Do this first
- Contact an NJHMFA housing counselor in your county; the counselor must sign your mediation certification
What this notice is in New Jersey
The New Jersey Foreclosure Mediation Act, N.J.S.A. 2A:50-74 to 2A:50-80, keeps the Judiciary's Foreclosure Mediation Program going by law. Under N.J.S.A. 2A:50-76, you must get written notice of the option to mediate when you get the Notice of Intention to Foreclose, and again when the foreclosure complaint is filed. The notice must be available in English and Spanish and must say that working with a trained counselor is required and that there is no fee.
The courts' version is titled "Free Court Foreclosure Mediation is Available" (CN 11284). The courts list it on their self-help page as the Notice of Foreclosure Mediation Availability.
Who qualifies
- You must be served with a foreclosure summons and complaint.
- The home must be an owner-occupied 1 to 4 family home and your primary residence.
- You must not be in bankruptcy, and every borrower on the loan must take part.
- You must work with a trained foreclosure prevention counselor at a HUD-certified agency, who signs your certification to the court.
- There is no fee to take part, under N.J.S.A. 2A:50-77(c).
How to count the 60 days
The courts' notice says you must return the Mediation Request Statement, found in the packet "How to Apply for Foreclosure Mediation" (CN 11270), to the Superior Court Clerk's Office, Foreclosure Mediation Unit, no later than 60 days after you receive the summons and complaint. The law says the courts must give you at least that long.
After 60 days, you can get into mediation only by filing a motion and getting a court order. A judge can also order mediation when you file an answer. If a sheriff's sale is already scheduled, you need a motion asking the court to stay the sale for mediation.
What it does and does not do
- It does not stop the foreclosure. The courts' notice warns that applying for mediation will not stop your lender from moving forward, so keep meeting your 35-day answer deadline if you dispute the lender's claims.
- Each side must attend, in person or by phone, through someone with authority to consider alternatives such as a loan modification, workout or refinance.
- If a party or its lawyer skips a session, the court can impose a civil penalty of up to $1,000, award fees, or other sanctions.
- You do not need a lawyer for mediation, but a lawyer can help if you also have defenses.
What to do this week
- Use NJHMFA's Find a Counselor page to reach a HUD-certified counselor for your county. NJHMFA says this counseling is free.
- Download the mediation request packet, checklist and financial worksheet from the New Jersey Courts foreclosure self-help page.
- Mail the Mediation Request Statement well before day 60, and keep proof of mailing.
- Keep watching your summons and complaint deadline at the same time.
- Read New Jersey foreclosure mediation and our national mediation notice page.
The rest of the New Jersey process
See how foreclosure works in New Jersey, the timeline, ways to stop it and free help in New Jersey, or read the national guide to this letter.
Common questions
When is the deadline to ask for New Jersey foreclosure mediation?
Within 60 days after you receive the summons and complaint. After that, you must file a motion and get a court order to enter the program.
Does New Jersey foreclosure mediation cost anything?
No. N.J.S.A. 2A:50-77(c) says you do not have to pay any fees to take part, and NJHMFA's counseling for mediation is free.
Does asking for mediation stop my New Jersey foreclosure?
No. The courts' notice says applying will not stop the lender from moving the case forward. If a sheriff's sale is set, you need a judge's order staying the sale.
Other New Jersey letters
- Notice of Intention to ForecloseUnder New Jersey's Fair Foreclosure Act, your lender must mail this notice at least 30 days, and no more than 180 days, before it files a foreclosure lawsuit. It must state the exact amount needed to cure the default and the date to pay it. It is a warning, not a lawsuit, and your right to catch up lasts much longer than the date in the letter.
- Summons and Foreclosure ComplaintThe summons and complaint start the foreclosure lawsuit in the Superior Court of New Jersey. You have 35 days from receiving them to file an answer. If you file a contesting answer, a judge in your county hears the case; if you do not answer, the Office of Foreclosure in Trenton handles it as uncontested.
- 14-day notice before final judgmentIn an uncontested New Jersey foreclosure, the lender must mail you this notice at least 14 calendar days before it asks for final judgment. It is your last warning that your right to cure ends when judgment is entered. If you mail back a good-faith cure statement within 10 days, the lender must wait at least 46 days.
- Notice of Sheriff's Sale and upset priceAfter final judgment, the county sheriff must sell the home within 150 days of receiving the writ of execution. You must get a mailed notice of the sale, and the upset price must be posted at least 4 weeks ahead. You can ask the sheriff for 2 adjournments of up to 30 days each without going to court.
- Writ of PossessionA writ of possession is a court order that lets the buyer at the sheriff's sale take possession of the home. The sheriff's office serves it and carries it out. It applies to the former owners, not to tenants protected by New Jersey's Anti-Eviction Act.
Sources
- N.J.S.A. 2A:50-74 to 2A:50-80, New Jersey Foreclosure Mediation Act (New Jersey Statutes, Office of Legislative Services)
- New Jersey Courts: Free Court Foreclosure Mediation is Available (CN 11284)
- New Jersey Courts: Foreclosure self-help
- NJHMFA: Foreclosure Prevention (Foreclosure Mediation Assistance Program)