Mortgage Modification as a Defense to Foreclosure

Summary: As of June 2010, mortgage modification is a numbers game. The percentage ratio of your mortgage payment to your gross income should be about 31%, after your interest rate is adjusted downward. Under HAMP, your interest rate will likely be adjusted downward.  We usually charge $1,000 to do the modification application materials and represent you.

What is the Likelihood that You can get a Mortgage Modification?

You almost certainly will get a mortgage modification where your future payments are not more than about 31% of your gross monthly income, after your interest rate has been adjusted downward.  Another factor is the total amount of all of your bills. This can vary some, depending on whether you are self-employed, etc.

Under HAMP, the mortgage modification is a numbers game.  The interest rate offered to you will be based on your income to mortgage payment ratio.

You may be able to get your interest rate adjusted down to as low as 2% in order for you to qualify under a HAMP modification so that you can qualify for the 31% ratio.

Also, you have to submit a "hardship" letter, which lists the reason(s) you are behind on your mortgage payments. And you should also show what you have done to correct the problem.

In 2009 and 2010, Court Cases in Colorado Are Stopping Foreclosure For Loan Modification

You may be able to stop a foreclosure even after the Rule 120 court case has been initiated, as long as the sale has not been held, by filing a lawsuit over the federal HAMP loan modification process.   There is a little more information on such lawsuits regarding HAMP loan modifications on another page.

In 2010, New HAMP Rules and Guidelines Make It Easier For You to Stop Foreclosure

In late March and again effective June 1, 2010, there are new rule changes which make it easier for you to stop foreclosure and get a HAMP mortgage loan modification.

What does it cost to do a Colorado Mortgage Modification?

We charge $1,000, no matter whether you have one mortgage or two on the same Colorado property.  This is for employed borrowers or those on unemployment.

This includes a hardship letter, as well as a copy of the required documents.

This applies to Colorado mortgages.

You May Be Able to Bring a Colorado Lawsuit Under HAMP to Stop Your Foreclosure

In 2009 and 2010, there are active court cases where foreclosures are being stopped in order to provide a HAMP loan modification.  You can ask us about this.