How To Compose Loan Modification Letter?

If you want to apply for a loan modification, the most essential thing you have to know are the facts regarding the program and the mechanics of the operation. The next thing to do is to make a letter requesting the lender to inform you the terms and conditions of loan modification.

The following are some instructions how to write a loan modification letter:

• When writing a loan modification letter you should include the particulars of the mortgage of your home in order that the lending institution can locate easily the file of your home mortgage. The communication must include the reference number of your loan, names registered in the documents of the mortgage, address of the location of your property, your personal contact number and the details of the loan lender.

• You have to specify in your letter the cause why you decided to apply for loan modification. Emphasize in your letter request that this loan modification is the last alternative you have decided on. You have to inform them also that you will fail to pay your amortizations if they will not cooperate with you.

• You must tell your lender the reason why you are encountering hardship in paying and the reasons that caused the financial difficulty. Probably you are now unemployed so you have no income. It could also be the death of your spouse that has caused the reduction of your earnings to a big level. You may have suffered any serious illness wherein you have to pay your medical bills or have to pay a lawsuit settlement.

• You can also inform your lenders that you are trying to increase your budget and try to encourage them that you will carry on to give your regular payment, if they will approve your application for loan modification. Give to them the payment plan you have prepared, this may help in your request. Inform them the number of payments you like to miss out in order that you can keep on track about the payments. You can also ask for the decrease in rate, expansion in the loan term or reduction in overall quantity of loan.

• Finally, make your letter request straight to the point and limit your letter to one page only.

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