Colorado loan modification has helped thousands of Colorado homeowners save their homes from going to foreclosure. When a lender modifies your loan, they are revising the terms of your loan to create a monthly mortgage payment that you can afford. You should read your loan documents to make sure you understand your rights and obligations so your lender does not try and pressure you into accepting bad loan terms. If you can negotiate most of the following terms, you have done a good job getting a modification that will work for you:
- Reduction of your interest rate by at least 2%.
- Your lender agrees to waive the default amount including interest, late fees and penalties.
- Your lender reduces the principal amount.
- Your lender permanently modifies your loan terms.
- The lender stops any foreclosure proceedings against you.
Should you Negotiate the Modification on Your Own?
Since most Colorado homeowners don’t know how to negotiate a modification on their own, it is recommended that you hire a modification attorney to help you prepare the application and negotiate the modification with your lender. Lenders can be difficult, and an attorney knows how to overcome lender objections. You only get one opportunity to obtain a modification so you don't want to make any mistakes. You will get much better results by using an experienced Colorado modification attorney.
How Long Does it Take?
You need to be patient because the modification process can take anywhere from a month to a few months. It depends on how busy your lender is and how many other modifications they are working on at the same time. Since mortgage loan modification is one of the most popular options that Colorado homeowners are choosing to save their homes from foreclosure, lenders are behind in their paperwork because they don’t have enough staff to handle all the requests.
There are a few things you can do to speed up the process such as:
- Making sure you submit your request to the right department.
- Submitting all the required financial information that your lenders requests.
- Following-up by calling your lender to make sure they received all the paper, and to keep calling until they assign a negotiator to your file. Once a negotiator is assigned, you can expect to hear whether or not your modification has been approved within a couple weeks.
- Responding to any correspondence or telephone calls from your lender promptly.
Consult with an Attorney
The modification process is complex. It is recommended that you consult with a Colorado modification attorney who can explain the process and the Colorado mortgage laws.
