Writing a Letter: Sample Loan Modification in the US

Everyone who has ever tried to do a loan modification by themselves knows how hard it can be. The process is very threatening. You might want to refer to a sample loan modification in the US. The process of course has a lot of twists and turns. First off, there is the application form that you need to form completely. This is more straightforward than the other tasks. But still, there are some tricky things you have to go through. Then there are the negotiations with your creditor. This can be handled well if you research the conversion of rates others are offering. Then there is the letter expressing the hardship of your situation. This part is perhaps one of the trickiest because you really need to balance your tone. So here for your reference is an example letter. Read this sample loan modification in the US if you need a guide.


To Whomever It May Concern:

This letter is a formal follow up to my loan modification application which I have sent this past August 12, 2009. The details of what we are looking to have are in the application, but of course it does not delve into the conditions that put us into a precarious financial situation.

Due to the recession, there were many jobs losses and cutbacks in our company a couple of months ago. Because of this, I was transferred into a lower paying job position. I consider myself one of the lucky ones because at least I still have a job, but my new salary is less than half of what I used to receive. Our financial situation got so bad that we had to break our savings so that we could pay our monthly mortgages while keeping up with our other expenses. Then, a couple of months ago, things got worse as our interest rate shot up from 8 percent to 11 percent since we were not able to pay the mortgage monthly.



In light of this, my request is that our rate be brought down around eight to nine percent. This seems like a fair amount for all parties. We were never late in our monthly payments until I was demoted. Also, my wife is about to start on a higher paying job two months from now. We are very willing to negotiate a compromise that will make both parties happy.

Sincerely,
John Doe


This sample hardship letter, as you can see, is very direct. You can even be more direct than this letter. The statement here is that you will not be able to pay the high interest due to a loss of income. Just mention why you had lost your income in the first place. Make sure you elaborate that there is no other way that your family can manage the bill right now.

Also, it is quite important as shown in sample loan modification in the US that you state the new rate that you want to have. Save them the time and effort. Think about how many applications they have to sift through. They will not have time to look for the definite adjustments.

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Joel Owens

A computer graduate and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around... (show bio)