Loan Modification

Loan modifications provide you the best opportunity to save your home if you are no longer able to afford your mortgage.   Virtually all lenders have a loan modification process that will allow homeowners to restructure their loans to reduce their payments.  

Some lenders participate in the Home Affordable Modification Program (HAMP), which requires homeowners to qualify for the loan modification.  All loan modifications require the home to be owner occupied.

Each lender has a specific loan modification package that needs to be submitted for review and approval.  If approved, the lender will present a new payment schedule to the homeowner for acceptance.   If the homeowner accepts the terms of the loan modification they will begin to make new payments immediately.

Loan modifications can be prepared, submitted and worked by the homeowner, or the homeowner can employ a company to prepare, submit and work the loan modification.  These companies typically charge between $1,500-$3,500 to work a loan modification.   In Colorado, these companies cannot charge the homeowner any upfront fees, and they only get paid if the homeowner accepts the loan modification.   A loan modification can only be worked by a licensed Colorado Mortgage Broker, or attorney in Colorado.  If you are willing to put in a little effort, you can work the loan modification as effectively as any loan modification company.   If you choose to work with a loan modification company, it is best to use a local company that is governed by Colorado law.  Beware of companies that charge an upfront fee or are from out of the state.

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