Bankruptcy and Mortgage Modification

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At Sadek Bankruptcy Law Offices, we realize that every situation is different. Our debt relief lawyers will take the time to learn about your situation and your goals. Our objective is to explain your legal options and offer the best debt relief strategy for you in the most compassionate and friendly manner possible. Call 24/7 to schedule your meeting with a lawyer.


Our office understands the financial stress our clients endure. Therefore, in addition to reasonable legal fees, we offer a payment plan to all of our valued clients to make quality legal services most affordable.


In addition to our primary law office in Center City, Philadelphia, we also have law offices throughout the Greater Philadelphia, Pennsylvania Area and in New Jersey. Our branch offices have contributed to making us the #1 Bankruptcy Filer and debt relief firm in the Greater Philadelphia area. Our goal is to have a convenient location within 20 minutes of where our clients work or reside.

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.

See also: Removing a Second Mortgage in Bankruptcy

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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