New Jersey homeowners behind on a mortgage—or expecting to miss a payment—should contact the mortgage servicer and a free housing counselor before paying a foreclosure-rescue company. State programs can help eligible households with arrears, housing charges, loss mitigation and court mediation.
Emergency Rescue Mortgage Assistance
NJHMFA’s Emergency Rescue Mortgage Assistance program can provide qualifying households with up to $75,000. Eligible uses may include mortgage reinstatement, escrow shortages, delinquent property taxes, HOA dues, municipal or tax liens, principal and interest, taxes and homeowners insurance.
ERMA is funded through the federal Homeowner Assistance Fund and requires a qualifying COVID-19-related financial hardship. Funding is finite, so homeowners must verify that applications remain available before relying on the program.
Basic ERMA eligibility
- Own and occupy an eligible New Jersey one- to four-unit primary residence.
- Have experienced a qualifying COVID-19-related financial hardship after January 20, 2020.
- Be unable to remain current on eligible housing expenses.
- Meet the program’s household-income limits.
- Provide required mortgage, income, identity and tax-verification documents.
Documents homeowners may need
- Government-issued identification for borrowers and spouses
- Recent income statements
- Asset attestation
- Signed IRS Form 4506-C
- Current statements for every mortgage
- Property-tax, HOA or lien records when assistance is requested
- Tax returns for self-employed applicants or households reporting rental income
- Proof of the qualifying financial hardship
Free foreclosure-prevention counseling
NJHMFA’s Foreclosure Mediation Assistance Program provides no-cost counseling to owner-occupants who are behind or in danger of default. A homeowner does not have to wait for a foreclosure complaint before requesting pre-foreclosure counseling.
A counselor can help review the budget, prepare an action plan, organize documents, communicate with the servicer and evaluate available loss-mitigation options.
New Jersey foreclosure mediation
Homeowners already served with a residential foreclosure complaint may qualify for court mediation. The Judiciary generally requires a mediation request within 60 days after service unless a court order permits otherwise. The homeowner must occupy the property, the borrowers must agree to participate and bankruptcy can affect eligibility.
What to do after missing a payment
- Open every servicer and court notice.
- Call the mortgage servicer’s loss-mitigation department.
- Request a written list of available options and documents.
- Contact an NJHMFA-approved housing counselor.
- Check current ERMA eligibility and funding status.
- Submit complete applications and retain confirmation.
- Respond promptly to requests for missing information.
- Consult a qualified New Jersey attorney when litigation, bankruptcy or disputed servicing is involved.
Possible servicer options
- Repayment plan
- Temporary forbearance
- Loan modification
- Partial claim or deferral
- Reinstatement assistance
- Short sale or deed-in-lieu when retaining the home is not feasible
Availability depends on the mortgage owner, insurer, program and household circumstances. Do not stop paying or ignore a notice based on generic online advice.
Foreclosure-rescue scam warnings
- Upfront fees for a guaranteed modification
- Instructions to stop communicating with the servicer
- Requests to send mortgage payments to a third party
- Pressure to sign over the deed or ownership interest
- Promises to erase a foreclosure through secret filings
- Impersonation of NJHMFA, HUD or the mortgage company
NJHMFA emphasizes that legitimate foreclosure-prevention counseling is available without a fee.
Official resources
- NJHMFA Emergency Rescue Mortgage Assistance
- Foreclosure Prevention Counseling
- Find a New Jersey housing counselor
- New Jersey Judiciary foreclosure information
General information only, not legal or financial advice. Programs, funding and deadlines can change. Verify availability with NJHMFA, the servicer and qualified professionals.
