Mortgage Modification: What You Need to Know

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Buying or building a new home is an exciting step in life, and the majority of people have to take out a mortgage to make this dream become a reality. While a mortgage can seem like an answer to your prayers when you’re looking to get into a home, it can quickly become a nightmare when families find themselves unable to keep up with monthly payments. After all, a mortgage is essentially a very large debt. 

Whether it’s a change in jobs, lost wages due to the pandemic, or simply less money than one had budgeted for, mortgages can become overwhelming and leave homeowners drowning in debt and facing foreclosure. Thankfully, a mortgage modification can help!

What is Mortgage Modification?

When someone gets behind on their mortgage or discovers that they can no longer make the payments, a mortgage modification is the best option to pursue. Through a mortgage modification, you are asking the lending company to change the terms of your mortgage so that payments become more manageable. You do away with the initial terms of your agreement and instead create a plan that better fits your current financial situation. 

Can You Always Get a Mortgage Modification?

When you sign up for a mortgage, you are legally binding yourself to the original terms and conditions. Because of this, the choice to provide a mortgage modification is completely up to the lender. The company through which you got your mortgage has the opportunity to either agree to lower terms or hold you to your original agreement – which might ultimately result in foreclosure on your home. While some lenders can be unyielding, most are happy to work with homeowners through the modification process. Most lending companies would rather receive their money back slower or with less interest rather than have to go through the eviction process. Additionally, a good attorney can work on behalf of the homeowner with the lender to best come to a solution that saves everyone money and heartache. 

Is It Too Late for a Mortgage Modification?

Homeowners who have already started the foreclosure process or have begun the path to bankruptcy often think it’s too late for them to pursue a mortgage modification. Thankfully, this is not the case at all! With the help of an attorney, homeowners in Pennsylvania can enter into a special “mortgage conciliation program” that will stop the foreclosure and then work to modify the mortgage payments. Likewise, those who have started the bankruptcy process can still benefit from mortgage modification by doing it through a court-supervised program. 

Do You Need an Attorney? 

If you’re pursuing a mortgage modification, then it’s important to enlist the help of a trusted attorney. While some mortgage companies offer their own modification plans, most of them have gained a bad reputation for doing a poor job throughout the process. While hiring an attorney to help may ensure a small upfront fee, it’s the best way to ensure that the mortgage modification goes through smoothly and that the homeowner lowers their monthly payments significantly.

For many homeowners drowning under the debt of a high mortgage, it can seem like there is no hope outside of foreclosure. Thankfully, a mortgage modification can help to give individuals a fresh start with manageable payments. Contact our team of attorneys today to discover if mortgage modification can help you regain control of your finances!

Brad Sadek

Brad Sadek is a passionate advocate for people facing financial distress. After graduating from Pennsylvania State University in 1999 with a BA in Political Science and a minor in Finance, he went on to graduate from Rutgers School of Law, Camden, in 2002. Brad uses his knowledge of bankruptcy law, foreclosure defense, and debt relief to great success - helping over 4,000 clients and growing Sadek and Cooper in size and geographic scope for over 15 years. He has helped individuals and married couples save their homes, defend against creditors in civil court and launch fresh financial starts through the consumer bankruptcy system - it is his passion. Brad maintains a friendly demeanor with everyone who walks into his office. According to him, his biggest accolades are the personal thank you notes and phone calls he receives in appreciation of his legal services.

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