(a) Purpose. Residential Foreclosure Mediation differs from other types of court-sponsored mediation. Foreclosures are contractual disputes that arise from a homeowner’s default of mortgage obligations. Residential foreclosure mediation shall explore whether an alternative solution is available to the parties, including but not limited to a loan modification agreement, repayment plan, reinstatement, or other acceptable form of home retention resolution, or a non-retention option such as a deed in lieu of foreclosure, cash of keys, short sale or market sale. Although the parties are not required to accept an alternative resolution, mediation may provide an opportunity for the homeowner to continue to reside in the mortgaged premises and may afford the lender an opportunity to avoid foreclosure costs and carrying charges, and to reduce the number of non-performing loans in their portfolio.
Rule 4:64-1B.Mediation of Eligible Residential Foreclosure Cases
Last amended May 1, 2019 · Current through June 18, 2026 · Last verified July 7, 2026
In one sentenceRule 4:64-1B creates a structured mediation program for residential foreclosures -- notice to the homeowner, an initial conference to exchange financial documents, then a formal mediation session -- aimed at exploring loan modifications or other alternatives to foreclosure, without staying the underlying case.
Full Text of Rule 4:64-1B
(b) Notification. Plaintiff’s attorney shall provide notice to the homeowner of the Residential Foreclosure Mediation Program when the Summons and Complaint are served.
(c) Referral to Mediation.
(1) A homeowner may apply to participate in the Residential Foreclosure Mediation Program by submitting a completed Mediation Request Statement to the Superior Court Clerk’s Office, Foreclosure Mediation, P.O. Box 971, 25 Market Street, Trenton, New Jersey 08625, no later than 60 days from the date the homeowner is served with the Summons and Complaint.
(2) After 60 days from the date a homeowner is served with the Summons and Complaint, and at any time prior to the sale of the property, a homeowner may apply to participate in the Residential Foreclosure Mediation Program only by filing a Motion to Participate in Mediation. The homeowner shall file the motion with the Superior Court Clerk’s Office in Trenton and notice the motion to the vicinage where the case is venued.
(3) A Superior Court judge may enter an order that requires the parties to attend Residential Foreclosure Mediation at any time following the filing of a complaint.
(d) Eligibility. Participation in the Residential Foreclosure Mediation Program is available only to qualified homeowners. To qualify, the homeowner must satisfy the following criteria:
(1) The mortgaged premises must be the subject of an active and open residential mortgage foreclosure case. Mediation is not offered in connection with any other type of foreclosure litigation.
(2) The homeowner must apply to participate in the Residential Foreclosure Mediation Program no later than 60 days from the date they are served with the Summons and Complaint unless a court order is entered directing the parties to attend mediation.
(3) The mortgaged premises subject to foreclosure must be the homeowner’s primary place of residence.
(4) The mortgaged premises subject to foreclosure must be a one to four family dwelling.
(5) All borrowers who execute the Note must agree to participate in the mediation. Absent a court order or an agreement by the lender or servicer that provides otherwise, Residential Foreclosure Mediation is not available unless each borrower is willing to participate.
(6) The homeowner is not presently in bankruptcy.
(e) Initial Conference.
(1) The Superior Court Clerk’s Office shall issue a Letter of Mediation Acceptance to each homeowner deemed eligible to participate in the Residential Foreclosure Mediation Program and shall schedule an Initial Conference between the parties no later than 45 days from the date of the letter.
(2) Prior to the date of the Initial Conference the plaintiff shall mail the defendant homeowner the following loss mitigation documents by regular and certified mail: A. An itemized loan transaction history with accompanying information, written in plain language, to explain any codes used in the history which are not otherwise self-explanatory; B. An itemized statement of the amount necessary to reinstate the mortgage loan; C. A statement of the amount necessary to pay off the mortgage loan; D. Copies of the Note, Mortgage and any agreements modifying such documents; and E. The name, business mailing address, electronic mailing address, facsimile number and direct telephone number of an individual able to respond with reasonable adequacy and promptness to questions relative to loss mitigation process.
(3) A law clerk or other designated personnel assigned to the Superior Court Clerk’s Office shall conduct the Initial Conference by telephone or other electronic means. The purpose of the Initial Conference is to facilitate the timely exchange of relevant financial documentation between the homeowner and the lender.
(4) If, following the Initial Conference, the parties have not exchanged all of the relevant financial documentation or are not otherwise ready to proceed to Residential Foreclosure Mediation, the Superior Court Clerk’s Office shall schedule a Second Conference no later than 45 days from the date of the Initial Conference, unless deemed necessary by the mediator. Subsequent conferences shall only be scheduled if deemed necessary by the Superior Court Clerk’s Office.
(5) In the event that a homeowner misses the Initial Conference due to an emergency or other unforeseen circumstances, the Superior Court Clerk’s Office may, at its discretion, schedule another Initial Conference for the homeowner.
(6) If the parties are not ready to proceed to Residential Foreclosure Mediation at the conclusion of a Second Conference due to a failure of the homeowner to exercise best efforts to provide complete financial documentation or to attend the scheduled session(s), the case shall be removed from the Residential Foreclosure Mediation Program.
(7) If the parties are not ready to proceed to Residential Foreclosure Mediation at the conclusion of a Second Conference due to a failure of the lender to review the homeowner’s financial documentation or to attend the scheduled session(s), the case shall be deemed a contested foreclosure and shall be referred to a Superior Court Judge for review.
(f) Residential Foreclosure Mediation.
(1) Upon timely submission of the necessary documentation to lender and the completion of the Conference, the Superior Court Clerk’s Office shall enter an Administrative Order scheduling a Residential Foreclosure Mediation no later than 30 days from the date the Conference was completed. The Superior Court Clerk’s Office shall provide the parties with a copy of the Administrative Order and shall upload the Order to the electronic case jacket.
(2) Designated judicial staff shall conduct the Residential Foreclosure Mediation. The purpose of the mediation is to explore whether an alternative resolution is available to the parties, including but not limited to a loan modification agreement, repayment plan, reinstatement, or other acceptable form of home retention resolution, or non-retention option such as a deed in lieu of foreclosure, cash for keys, short sale or market sale. The mediation shall be attended by a representative of the lender and by each homeowner who executed the Note, unless otherwise agreed to by the lender or servicer or ordered by the court.
(3) Residential Foreclosure Mediation shall be conducted at the courthouse where the case is venued. The parties are required to communicate special needs, such as an interpreter or handicapped access, to the vicinage where the mediation will be conducted.
(4) If, following the first scheduled mediation session, the parties have been unable to agree to an alternative resolution, the mediator may in his or her discretion schedule a second mediation session no later than 15 days from the date of the first scheduled mediation. No third mediation session shall be scheduled absent a court order.
(5) If the parties are unable to reach a mediated resolution at the conclusion of a second mediation session due to a failure of the lender to timely review the homeowner’s financial documentation the case shall be deemed a contested foreclosure and shall be referred to a Superior Court Judge for review.
(g) Stay of Proceedings. Absent a court order to the contrary, the commencement of Residential Foreclosure Mediation proceedings shall not stay the underlying foreclosure litigation.
(h) Good Faith. Both the lender and the homeowner shall negotiate in good faith to reach a mutually agreeable resolution. At a minimum, good faith requires:
(1) Compliance with this rule and applicable court rules, court orders, and directives by the court or its designee pertaining to the Residential Foreclosure Mediation Program;
(2) Compliance with applicable mortgage servicing laws, rules, regulations, and investor directives;
(3) Conduct consistent with efforts to reach a mutually agreeable resolution, including but not limited to, avoiding unreasonable delay, appearing at the mediation with complete settlement authority and providing accurate information to the court and the parties.
(i) The court may impose appropriate sanctions against the noncomplying party including:
(1) Tolling of interest, fees and costs;
(2) Reasonable attorney’s fees;
(3) Monetary sanctions;
(4) Any other relief that the court deems just and proper. (j) A party to a foreclosure action may not charge, impose or otherwise require payment from the other party for any cost, including but not limited to attorney’s fees for the participation at or in the Residential Foreclosure Mediation Program, except by court order.
Amendment History
New Jersey publishes each rule’s amendment record in a “History” note beneath the rule. It is reproduced verbatim below; the “R.R.” citations refer to the former Revised Rules numbering the current rules replaced.
Adopted April 30, 2019 to be effective May 1, 2019.
Plain-English Summary
New Jersey gives homeowners facing residential foreclosure a structured chance to talk things out before the case runs its course. The plaintiff's attorney has to notify the homeowner of the mediation program when the complaint is served, and an eligible homeowner — one in an active residential foreclosure on a primary one-to-four-family home, not in bankruptcy, with every borrower willing to participate — can apply within 60 days of service, or later by motion, or whenever a judge orders it.
The process runs through an initial conference to exchange loan and financial documents, followed by an actual mediation session exploring options like a loan modification, a repayment plan, reinstatement, or a non-retention resolution such as a deed in lieu of foreclosure or a short sale. Neither side has to accept anything offered, but both are held to a good-faith standard — showing up with real settlement authority and giving accurate information — backed by sanctions like tolled interest or attorney's fees for a side that doesn't. And unless the court says otherwise, none of this pauses the foreclosure case itself.
Frequently Asked Questions
Is a homeowner required to accept a resolution offered during residential foreclosure mediation?
No. The parties aren't required to accept an alternative resolution, though mediation gives both sides a chance to explore one.
Does starting residential foreclosure mediation pause the foreclosure case?
No, absent a court order saying otherwise.
What happens if a lender doesn't negotiate in good faith during mediation?
The case may be deemed a contested foreclosure and referred to a judge, and the court may impose sanctions such as tolling interest, fees, and costs, or awarding attorney's fees.
Source & verification. The rule text and amendment history are reproduced verbatim from the
official New Jersey Rules of Court (N.J. Ct. R. 4:64-1B). Prescribed by the Supreme Court of New Jersey (N.J. Const. art. VI, § 2, ¶ 3). The plain-English summary is original and written by us. Last verified July 7, 2026. ·
Official source
Also known as: residential foreclosure mediationloan modification mediation