- #Sample letter for hardship loan modification how to#
- #Sample letter for hardship loan modification mod#
- #Sample letter for hardship loan modification free#
I’d like to request for a reduction in interest rate in the loan to enable us catch up with outstanding payments. We already have a loan agreement which I do not wish to disregard but for some reasons, I have to request for a loan modification. I am writing this letter to support my application for loan modification to enable me catch up with my loan repayment plan. Letter of financial hardship for loan modification for Robert M. Here are some sample letters for financial hardship for loan modificationĪlso See : Sample Goodwill Letter for Student Loans Sample of hardship letter for loan modification In your letter, you would need to explain the cause of you financial hardship it could be job loss, death of a loved one, illness, and other severe issues. Explain your financial hardship: financial hardship refers to unplanned expenses that way up a big chunk of your finances or a loss of income.Make sure you’re clear with your requests. For instance do you want a reduced interest rate or a longer time frame. Be direct in your request: it’s important to be very direct in your request.Only include necessary information and avoid repetitions. Go straight to the point: in as much as you want to provide enough details as to why you’re falling behind your repayment plan, you would want to keep the letter concise and straight to the point.
#Sample letter for hardship loan modification how to#
How to write a hardship letter for loan modification This letter also lends your lender know how you plan to carry on with your loan repayment. A hardship letter is one that tells your lender the financial problems that have brought about your inability to stick to the original loan repayment plan.
The best way to go about it is to wrote a hardship letter for loan modification. Maybe you took a loan and for some reason, you are unable to stick to the repayment plan but would like to still pay up your loan.
#Sample letter for hardship loan modification free#
If the loan is in two people’s names, each borrower should sign and date the letter.Ī succinct, well-reasoned hardship letter improves your chances of getting your point across and your request approved.How to Write a Hardship Letter for Loan Modification due to Illness (With Free Samples) Write that you await the lender’s response and include contact information such as your phone number and email address. If you have spoken to a real estate attorney, include the contact information and the advice the attorney gave you. Mention whether you tried to refinance the mortgage but didn’t qualify, briefly describe your job search and cutbacks you’ve made in the household budget - whatever is relevant. The third paragraph lists the steps you’ve taken to fix the problem on your own before requesting a loan mod.
#Sample letter for hardship loan modification mod#
Whether a loan mod is done under the Home Affordable Modification Program or the lender’s own set of rules, there usually isn’t much leeway in how a lender’s offer is formulated. Make a request that puts you back in the situation you were in before the financial hardship, so you can continue to pay on your mortgage. If the adjustable rate on your mortgage increased too much for you to afford the new payments, ask the lender to reduce the interest rate. If the home is worth less than your mortgage balance, request a balance reduction. State which terms of the mortgage you want changed.
Lenders do not grant mortgage modifications easily, so the borrowers who present viable solutions that allow them to keep making payments are more likely to have requests granted. In the second paragraph, suggest solutions. Explain the financial hardship that prompts you to make the request. In the first paragraph, state that you are requesting a loan modification. On the regarding line, or the RE: line, include your loan number. Skip two more lines and write the person’s name. The next two lines contain the mailing address. Then, when addressing the letter, place the lender name on the first line, the department name on the second and the name of the person you are writing to on the third line. You’ll need this information for the letter. Speak with someone in there, obtaining the correct spelling of his or her name, the address and direct phone number and extension. Learning the proper format and ingredients of a hardship letter is the key to writing an effective, succinct and complete request.īefore writing the letter, contact the lender’s loss mitigation department, which assesses and processes mortgage modification requests. When you apply for a mortgage modification, one key component is the hardship letter that explains why you’re making the request. Write hardship letter for loan modification – The Mercury News