Bankruptcy and Mortgage Modification

Bankruptcy and Mortgage Modification

Most homeowners who have defaulted on their mortgage have heard the term or tried for a “Modification of Mortgage,” in short a modification. A modification is a change of the terms of the original mortgage agreed to by the lender and borrower. A Mortgage modification is likely to include the following:
Reduction in interest rate
Reduction in Principal Balance
Reduction in Late Fess or Penalties
Lengthening the term of the loan and/or
Capping the Monthly income based on a percentage of household income.
In Bankruptcy a homeowner is more likely to receive a mortgage modification based on the Net Present Value or NPV test. Part of this test involves quantifying the likelihood of borrower default on the mortgage loan. Lenders consider bankruptcy a positive for a mortgage modification in that the reduction of other debts such as credit cards, personal loans, medical bills, etc., increases the likelihood of future timely mortgage payments.
Once a Mortgage modification is approved, the process is not over, the Bankruptcy Court must approve the mortgage modification. In the Eastern District of Pennsylvania Bankruptcy Court, the approval process is done by way of Court Motion.
Sadek Law Offices, LLC has helped 1,000’s of homeowners through difficult financial times and would be happy to speak with you about your situation. You may call our law office at 215-545-0008 to discuss your situation.

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Doug Tinlin
06:55 15 Feb 18
Brad Sadek gave me hope when he decided to handle my mortgage for enclosure defense. I had exactly 10 days left of the 30 days ultimatum given me, but he was able to bargain for an extra 30 days for me to pay up. That duration turned out just right.
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Sadek and Cooper law office was a wonderful experience to work with. Bankruptcy is a difficult experience but they helped with the stress so much and made it easy. I would recommend Sadek and copper too anyone.
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19:09 28 Dec 17
Working with both Brad & Matthew was a pleasure. Both gentlemen are extremely knowledgeable and helpful in providing me the right assistance needed to make the correct decision to benefit me in the long run. I would recommend both candidates to anyone looking for assistance with a reputable law firm.
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Jennyfer Santana
21:17 21 Dec 17
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