HB 26-1089

HB 26-1089, also known as the Uniform Mortgage Modification Act, makes it easier for homeowners in Colorado to modify their mortgage terms without losing any legal protections or priority over their property. This means that if a homeowner needs to change the terms of their loan (like lowering monthly payments), the modification won't affect how the mortgage is prioritized against other claims on the property or reduce the security of the loan for the lender. The bill has been signed into law, so it's now active and affecting homeowners who seek modifications to their mortgages in Colorado.

Official Summary

The act enacts the 'Uniform Mortgage Modification Act', drafted by the Uniform Law Commission. The act provides that, in the event that a mortgage is modified:The mortgage continues to secure the obligation as modified;The modification does not affect the priority of the mortgage;A mortgage retains its priority regardless of whether a modification agreement is recorded; andThe modification is not a novation.(Note: This summary applies to this bill as enacted.)

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