Colorado § 38-40.5-104 - Effect of Mortgage Modification.

Full text of Colorado Colorado Revised Statutes § 38-40.5-104 — Effect of Mortgage Modification., with citation guidance and answers to common questions.

§ 38-40.5-104. Effect of Mortgage Modification.

(a) For a mortgage modification described in subsection (b) of this section:

(1) The mortgage continues to secure the obligation as modified;

(2) The priority of the mortgage is not affected by the modification;

(3) The mortgage retains its priority regardless of whether a record of the mortgage modification is recorded in the office of the county clerk and recorder in the county where the property is located; and

(4) The modification is not a novation.

(b) Subsection (a) of this section applies to one or more of the following mortgage modifications:

(1) An extension of the maturity date of an obligation;

(2) A decrease in the interest rate of an obligation;

(3) If the change does not result in an increase in the interest rate of an obligation as calculated on the date the modification becomes effective:

(A) A change to a different index that is a recognized index if the previous index to which changes in the interest rate were linked is no longer available;

(B) A change in the differential between the index and the interest rate;

(D) A change from a fixed rate to a floating or adjustable rate based on a recognized index;

(4) A capitalization of unpaid interest or other unpaid monetary obligation;

(5) A forgiveness, forbearance, or other reduction of principal, accrued interest, or other monetary obligation;

(6) A modification of a requirement for maintaining an escrow or reserve account for payment of an obligation, including taxes and insurance premiums;

(7) A modification of a requirement for acquiring or maintaining insurance;

(8) A modification of an existing condition to advance funds;

(9) A modification of a financial covenant; and

(10) A modification of the payment amount or schedule resulting from another modification described in this subsection (b).

Source: L. 2026: Entire article added, (HB 26-1089), ch. 76, p. 301, § 1, effective August 12.

Source: official Colorado text · Last verified 2026-08-27

Frequently Asked Questions About Colorado § 38-40.5-104

What does Colorado Revised Statutes § 38-40.5-104 cover?

Section 38-40.5-104 ("Effect of Mortgage Modification.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Colorado § 38-40.5-104?

A common citation format is "Colorado Revised Statutes § 38-40.5-104" (Colorado). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Colorado law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.

How does Colorado § 38-40.5-104 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Official text of § 38-40.5-104 at the Colorado source

Not legal advice. Verify against the official source and consult a licensed attorney in Colorado.