If you own a home in New Jersey and are facing foreclosure, you can use the New Jersey Superior Court’s Foreclosure Mediation Program to find a solution and stop foreclosure in NJ. The purpose of the program is to encourage your lender to identify alternatives to foreclosure and provide you with an opportunity to work with professionals knowledgeable about modifying home loans in a way that may work for you and stop foreclosure in NJ. When you choose to participate in the program, you can expect to disclose your financial information and attend a mediation session at the courthouse with your lender and court-appointed mediator.
New Jersey is a judicial foreclosure state. This means that a lender wanting to foreclosure on a mortgage must file a lawsuit in the New Jersey Superior Court. As with any lawsuit, you must be served with a copy of the summons and complaint. Under New Jersey law, you have 35 days after being served to file an answer with the court contesting the foreclosure. Under normal circumstances, a foreclosure lawsuit in New Jersey takes four to six months to complete, after which the lender obtains a judgment of foreclosure. About a month later, a foreclosure sale is conducted by the sheriff.
Requesting Foreclosure Mediation
When you’re served the summons and complaint starting the foreclosure lawsuit, you should also be served with a notice informing you of the court’s mediation program. The program is voluntary, and you must submit a written request to the court to enroll in the program within 60 days after being served. The mediation process can be a helpful tool to stop foreclosure in NJ. The court provides a form for the request that must be used. Along with the request form, you must also complete and file a financial worksheet provided by the court. The worksheet requires you to disclose your assets, income and monthly expenses with supporting documentation attached to the worksheet, such as pay stubs and bank statements. The court will forward copies of these forms and documents to the attorney representing your lender in the foreclosure lawsuit.
Foreclosure Mediation Session
Approximately 45 days after receiving your request for mediation and financial worksheet, the court will notify you of the date for your mediation session. You must attend the session along with the mediator and the lender’s attorney. A representative for your lender who has authority to resolve the case may also be present, but must at least be available by phone. The mediator organizes and controls the session, such as deciding when to meet separately with each side to discuss how the case can be resolved other than by foreclosure. If the mediator is successful in facilitating an agreement between you and your lender, a document will be prepared setting forth the agreement to be signed by all parties and the mediator.
The mediator cannot force any party to settle or limit the discussions to a particular type of settlement. In foreclosure cases generally, settlements are based on various scenarios such as keeping you in the home with a modification of your loan or a repayment plan for the delinquent mortgage payments. You may also decide to relinquish the property through a short sale or deed-in-lieu of foreclosure that also extinguishes your payment obligations to your lender. However, if the mediation does not result in a resolution of the case, you can expect the lender to proceed with the foreclosure lawsuit and eventual sheriff’s sale.
If you are interested in learning more about using the mediation process to stop foreclosure in NJ contact Scotty Buys Homes!
We Buy New Jersey Houses For Cash. Get Your Fair Cash Offer Today.
Give us a try! At Scotty Buys Houses we believe in a 100% no-hassle and no-obligation process.
Selling your New Jersey house shouldn’t be tough or stressful.
If you need to sell your house fast and can’t wait the 3-6+ months it can take to sell your house yourself or through an agent, you don’t have anything to lose by seeing what we’ll offer on your house.
Fill out the short form through the link below or give us a call anytime at (973) 910-1001. We’ll get some basic information about your house and within 24 hours will send you a formal written offer. If the offer works for you, we’ll work with a local neutral 3rd party title company to put the sale paperwork together and set a closing date that fits your schedule.
Get the process started below or call (973) 910-1001!