New Partnership Aims to Aid Morristown Homeowners Facing Foreclosure

New Jersey Judiciary collaborates with NJHMFA to offer mediation services and connect residents to essential resources.

MORRISTOWN, NJ - The New Jersey Judiciary has announced its collaboration with the New Jersey Housing and Mortgage Finance Agency (NJHMFA) to support homeowners on the brink of foreclosure or those facing challenges with their mortgage payments.

The initiative focuses on the Judiciary’s pre-foreclosure mediation program, a service available to residential homeowners not currently undergoing litigation. This program is specially designed for those who have defaulted on their mortgage or foresee potential payment difficulties. The mediation process provides a platform for homeowners and lenders to explore alternatives to foreclosure, such as refinance options, loan restructuring, and possible repayment plans. Importantly, homeowners can access this program at no cost.

Additionally, the partnership will bridge homeowners with an array of free services offered by NJHMFA. This includes consultation with certified housing counselors, connections with realtors, and a variety of other community-based resources available prior to the filing of a foreclosure complaint.

Glenn A. Grant, administrative director of the courts, highlighted the gravity of potential foreclosure, stating, “The possibility of foreclosure can be overwhelming. Homeowners should be aware of their rights and responsibilities as well as places they can turn to for assistance. We encourage anyone at risk of foreclosure to take advantage of this opportunity for mediation and to reach out for more information about their options."

Homeowners are given a window of 30 days from the reception of a foreclosure intent notice to clear the debt or negotiate alternate solutions with their lender. Failure to address the notice in this timeframe may lead to a foreclosure complaint's submission in court.

Melanie R. Walter, NJHMFA Executive Director, commented on their foreclosure prevention initiative, known as ERMA. "NJHMFA’s foreclosure prevention program provides resources to help struggling homeowners clear mortgage delinquencies and regain their financial footing,” Walter said. “We are pleased that this partnership with the courts ensures that foreclosure prevention resources reach those individuals most in need of assistance at a crucial time."

Historical data reveals that New Jersey witnessed a surge in foreclosure complaints during 2007-2012, with filings exceeding 200,000. However, as of October 1, the pending foreclosures stood at a reduced figure of below 12,000. Annually, the Judiciary observes approximately 16,000 new foreclosure filings.

For homeowners seeking help, assistance can be sought by calling 609-421-6100. Further details are available on the Judiciary’s pre-foreclosure information webpage at njcourts.gov/foreclosure.