Skip to content
Call for Free Consultation:  (201) 970-6534
YouTube Facebook Linkedin Twitter
Denbeaux & Denbeaux - Attorneys at Law
  • About
  • Practice AreasExpand
    • Foreclosure Defense
    • Loan Modification
    • Bankruptcy
    • Debt Defense
    • Illegal Repossession
  • ResourcesExpand
    • NJ Foreclosure Guide
    • NJ Foreclosure Process
    • Foreclosure FAQ
  • Articles
  • Contact
Free Consultation
Denbeaux & Denbeaux - Attorneys at Law
Foreclosure Articles

What is New Jersey Foreclosure Mediation?

ByJoshua Denbeaux February 26, 2020May 8, 2025

What is New Jersey Foreclosure Mediation?

I created the video here addressing that question. If you want to understand further, the following is a deeper dive into the topic.

So what is it?

The foreclosure mediation program is a mediation handled through the court system and set up by Chief Justice Stuart Rabner of the New Jersey Supreme Court. The goal of the program is for the Court to have a role in the mediation of foreclosure litigation.

Do I need a lawyer? Do I need to actually pay anyone to help me with the Mediation Program?

No.

NO! Absolutely not. That is one definite benefit. You do not NOT need an attorney to go through the mediation program. You can and should do this yourself. Save your money.

If you are nervous or anxious or scared about the whole legal process and want representation to help you, then do hire someone, but understand that attorneys are not a required part of the process. It is designed to help you help yourself without the expense of a lawyer or other person you might pay to help you.

Does it work?

That is a really interesting question, and it is actually a lot more complicated than you would think. The reason why it is a difficult question to answer is that the borrower is already entitled, per federal law, to submit applications for ‘loss mitigation.’

(Loss Mitigation is the industry term for any negotiated resolution, which includes modification but also includes deed in lieu, short sale and any other negotiated resolution of a foreclosure case.)

So, because you are already entitled to what the mediation process provides, when the mediation results in a modification, did it work? Or were you simply given what you were already entitled in the first place?

Should I apply for the mediation program?

Again, a very complicated question. It seems simple, and thinking just on the surface it is simple: Do I apply or not?

You want to ask me that question? I am going to ask you a question back: What do you want? What is your goal? What is your financial situation?

And similar questions.

The reason why I am going to ask those questions and one of the reasons why the simple question as to whether you should apply for mediation is complicated, is the federal law that gives you the right to apply for loss mitigation (modification) has special and specific rules as to your rights during the mortgage servicer review of that modification application.

Would you stop being a stupid lawyer and just start answering the damn question already? Jeez!

I’m trying! I can’t help being a lawyer. It’s what I do.

But seriously, there is a very large flaw in the mediation program. Initially people were using it to delay the sale of their property by submitting for the mediation right before sale.

Oh, heaven forbid! How dare they?

And so the plaintiff’s bar, meaning the lawyers representing the banks and mortgage servicers, put enough pressure on the Foreclosure Clerk’s Office that things were changed to limit when in the foreclosure process the mediation program would be allowed to start.

And here is where push comes to shove: I am not in favor of having my clients apply for modification (or other loss mitigation) except when it is most advantageous for my clients to utilize their right to review of an application for loss mitigation. And since the mediation program is not permitted without judicial permission to enter the program after a certain date in the foreclosure process, that often does not meet my preferred schedule for when is best for my clients to apply for modification.

OK, I get that. But when should I ask for Mediation?

That question really is when should you apply for a modification? And that answer depends on a number of factors.

Let’s say you are amongst the very, very vast majority of homeowners who talk to me. If you are, you are a person or couple or family that fell on hard times that were temporary. They might have been quite a long period of time, but you and yours are back to a monthly income that allows you to pay your bills again as they existed before you ran into trouble.

So, if you are those people, shouldn’t you apply for a modification immediately?

In most cases, I advise NO.

You should, instead, Answer the Foreclosure Complaint (which you can do on your own – I have a video and a blog post about that) and put together a strategy for resolving your debts that have built up during your downturn and save some money.

It is so important, in my view, to utilize the foreclosure process to delay things so that you can get yourselves into a good financial place before modifying your loan, through mediation or otherwise.

That means considering a Chapter 7 Bankruptcy, or negotiating a short payoff of some debts, or maybe it is just using the mortgage payment you can now afford to put against credit cards, medical debts, car loans … whatever it is that is on your balance sheet. (Please seek help from a financial professional or an attorney in understanding how best to do this.)

The last thing I want is for consumers to negotiate a modification, get into a payment plan that with all their other debts they can only barely handle, hit one problem and be back in the soup again.

So can you wrap this up, please? This is getting a bit long.

The goal of the mediation program is to put people back into their mortgage and end the foreclosure.

The goal of every good attorney representing people in foreclosure or other financial distress is to get them out of financial distress and into a financially healthy place. Occasionally that involves the mediation program (because you can do that on your own with paying attorneys or other experts) and oftentimes the mediation program is not the right way to go.

It’s complicated, and I hope this helped you understand the system a little bit better.

Joshua Denbeaux

Attorney

Joshua Denbeaux is a Partner at Denbeaux & Denbeaux, concentrating his practice on financial consumer rights issues and foreclosure defense. He has substantial experience in legal matters related to foreclosure, loan modification, debt collection, and the prosecution of cases related to predatory lending. Mr. Denbeaux received his law degree in 1994 from Seton Hall University after completing his undergraduate work at The College of Wooster. Mr. Denbeaux is licensed to practice in the United States District Courts for New Jersey.

Post navigation

Previous Previous
Are all lawsuits by Pressler fraudulent?
NextContinue
What Happens When You Talk With Attorney Denbeaux?

Free Foreclosure Defense Consultation

Facing foreclosure? Contact us today for a free initial consultation to learn about your options to stop for fight foreclosure on your home.

Schedule A Consultation

Free Foreclosure Resources

2024 Foreclosure Guide
NJ Foreclosure Process
NJ Foreclosure F.A.Q.

Facing Foreclosure From A Bank or Servicer?

  • Bank of America
  • BSI Financial, Inc.
  • Carrington Mortgage Services
  • Cenlar FSB
  • Fay Servicing
  • Flagstar Bank
  • Freedom Mortgage
  • Kondaur Capital
  • Mr. Cooper
  • Nationstar Mortgage
  • PennyMac Loan Services
  • PHH Mortgage
  • PNC Bank
  • Rushmore Loan Management Services
  • Select Portfolio Servicing
  • Shellpoint Mortgage Servicing
  • Specialized Loan Servicing
  • Wells Fargo

New Jersey Counties We Serve

  • Atlantic County
  • Bergen County
  • Burlington County
  • Camden County
  • Cape May County
  • Cumberland County
  • Essex County
  • Gloucester County
  • Hudson County
  • Hunterdon County
  • Mercer County
  • Middlesex County
  • Morris County
  • Ocean County
  • Passaic County
  • Salem County
  • Somerset County
  • Sussex County
  • Union County
  • Warren County
Denbeaux & Denbeaux - Attorneys at Law

Denbeaux and Denbeaux is a family-run law firm that represents the under-represented. The firm primarily practices mortgage, consumer protection, automobile, and repossession litigation.

Contact Us

372 Kinderkamack Road, Suite 5
Westwood, NJ 07675

(201) 970-6534

  • Foreclosure Defense
  • Loan Modification
  • Bankruptcy
  • Debt Defense
  • Illegal Vehicle Repossession

© 2025 Denbeaux & Denbeaux, All Rights Reserved. Legal Marketing by Orsanna.

  • About
  • Practice Areas
    • Foreclosure Defense
    • Loan Modification
    • Bankruptcy
    • Debt Defense
    • Illegal Repossession
  • Resources
    • NJ Foreclosure Guide
    • NJ Foreclosure Process
    • Foreclosure FAQ
  • Articles
  • Contact