Facing foreclosure can be scary. If you’ve received a Notice of Intent to foreclose or a foreclosure complaint and summons, you might not know how to save your home. You may have heard of the Foreclosure Mediation Program, which is available as an option for New Jersey residents.
The NJ foreclosure mediation program offers a way for you to work with your lender on foreclosure-related disputes. If you’re behind on your mortgage, there are options available to help you avoid foreclosure.
Before you decide to pursue mediation, you need to understand the risks associated with mediation and other alternatives to stop foreclosure. Mediation rarely works out in favor of the homeowner. Our firm avoids the mediation process as much as possible so our clients can defend their rights in court.
Denbeaux Law can help you explore your options to avoid foreclosure and help you avoid the mediation process. Contact us today to learn more about how we may be able to help you.
How Does The New Jersey Foreclosure Mediation Program Work?
The New Jersey foreclosure mediation program allows homeowners facing foreclosure to meet with their lender and a neutral mediator to resolve disputes and explore solutions to avoid foreclosure.
The mediation program supplies a neutral mediator, but it’s recommended that you work with an attorney who can help advocate for your interests and make sure that you’re advocated for. Large corporations of all kinds often write mediation into contracts to prevent costly court costs, knowing they can bury cases in mediation and prevent their wrongdoings from becoming public knowledge. In some states, mediation is the only pathway toward stopping foreclosure or trying to hold your lender accountable for violating your rights.
New Jersey has a special process that allows real estate proceedings to happen in court. Our state, unlike almost every other, strives to protect consumers from large corporations that would take advantage of homeowners in mediation, providing a clear and legal pathway towards defending your homeowner rights.
How Mediation Helps & How It Hurts Homeowners
Mediation is supposedly designed to help homeowners explore alternatives to foreclosure like a loan modification, forbearance, repayment plan, or short sale. But before you decide to go forward with mediation, think about who a mediation really serves.
If New Jersey has decided that every homeowner should be allowed to bring their foreclosure case to court and we have designed a special process for that unique to our state, why would mediation be a good idea? Who does it serve?
In mediation, lenders can easily pressure a mediator in a way they can’t in a court. Instead of spending money defending their foreclosure or wrongdoing, they can easily sweep your complaints under the rug. While the mediator is supposed to be neutral, they aren’t a judge, and mediation isn’t recorded in court documents the same way, so they don’t lose face because of their mistakes.
Meanwhile, instead of getting your day in court and being heard by a judge, your case is quickly “mediated” into a result you’re most likely unhappy with because mediation is all about finding the middle ground, not necessarily what’s right.
Foreclosure Mediation Requirements
The foreclosure mediation program in NJ is available to all homeowners who meet certain requirements. This is not an income-based program.
In order to qualify for the foreclosure mediation program:
- Have been served with a foreclosure complaint and summons
- Be a 1-4 family residential property
- Be your primary residence
- Not be in bankruptcy
When you received your foreclosure notice, your lender may have pressured you to participate in mediation. You have other options and have the right to pursue your foreclosure case in court because you’re a New Jersey homeowner.
Foreclosure Mediation With An Attorney
You must complete and return the mediation request statement to participate in the foreclosure mediation program. You must apply for the mediation program within 60 days of receiving the summons and complaint.
If your house is already scheduled for a sheriff’s sale, you will need to file a motion asking the court to stay the sheriff’s sale so you can work through the mediation program.
A foreclosure attorney can help you through this process. Depending on your specific situation, you may even be required to have someone representing you throughout the mediation process. Still, there are usually better options—going into mediation won’t likely save you any money or get better outcomes, despite what your lender tells you.
Contact Denbeaux Law Today
When it comes to your home and foreclosure, you need to act quickly. If you’re being pressured into mediation by your lender, call us today to seek alternatives and maintain your rights as a New Jersey homeowner.
Contact Joshua Denbeaux today to learn more about how we may be able to help you through the foreclosure process to protect your home, your rights, and your financial interests.
