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Loan Modification Hardship Letter Template
What Is a Loan Modification Hardship Letter?
A Loan Modification Hardship Letter is a formal statement sent by the borrower to the lender with the intention to explain the financial difficulties the borrower has encountered and to request the modification of the loan to make it more affordable or create a more flexible payment schedule.
The lender must receive and review official documentation that proves your lack of means and challenging life circumstances before there are any amendments to your loan. If you are able to illustrate your point using bank statements, wage statements, and other documents that verify your inability to keep up with payments in accordance with your original agreement, the lender may grant you a loan modification. Do not ignore your problem and hope that the issue will solve itself - contact the lender as soon as you can to explain which hardship forced you to delay payments.
You can find a Loan Modification Hardship Letter template through the link below.
How to Write a Hardship Letter for a Loan Modification?
Here is how you compose an effective Hardship Letter for Loan Modification:
- Greet the lender and introduce yourself. Add the details of your loan so that the recipient can quickly find it in their database and start working on your issue.
- State the purpose of your letter - you have financial difficulties and have no choice but to ask them for the loan modification. Explain the circumstances that led to your financial troubles - maybe you have lost your job, received overwhelming medical bills, went through a divorce, or suffered from a natural disaster. You must not only indicate the reason for your poor financial standing, but also prove it by referring to documents, statements, affidavits, and medical records that confirm your words - attach the copies of the supplemental documentation to the letter.
- Be precise with what you are asking - you can request the modification of the loan or a short sale if you are behind on your mortgage. If you strongly believe you will be able to return to a regular payment schedule after a certain period of time, you may promise the lender to get back to the original arrangement in six months or a year.
- When writing a Hardship Letter for Loan Modification, you need to remember this document will decide your financial future and might be used later as evidence against you in case your loan becomes a matter for the court. It is important to be not only concise and honest but also keep your tone professional and polite - do not blame the letter reader for troubles or constant calls you may have received so far, simply present the facts and leave the personal feelings to yourself.
- Once again reiterate that you are worthy of the loan modification, thank the recipient of the letter for their time, add your contact details, and sign the document. It is better to send it via traditional mail to obtain a receipt.
Related Letter Templates:
Download Loan Modification Hardship Letter Template
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