[Your Name] [Your Address] [City, State, Zip Code] [Email Address] [Phone Number] [Date] [Recipient's Name] [Recipient's Designation] [Creditor's Name] [Address] [City, State, Zip Code] Subject: Request for Temporary Reduction of Loan Payment Amount Dear [Recipient's Name], I hope this letter finds you in good health. I am writing to you today to discuss my current financial situation and request your assistance in temporarily reducing my loan payment amount. Due to unforeseen circumstances, I am facing financial hardship that has made it difficult for me to meet my monthly loan obligations. I am a resident of Maryland and hold a loan account with [Creditor's Name] since [Loan account opening date]. I have diligently made regular payments on time, but recently, a series of unfortunate events, including [mention specific circumstances such as job loss, medical emergency, or unexpected expenses], have severely impacted my income and ability to meet my financial responsibilities. Furthermore, I am proactively reaching out to you to explore the possibility of temporarily reducing my loan payment amount until I can stabilize my financial situation. Furthermore, I believe that with a reduced payment amount, I will be able to continue meeting my loan obligations and avoid defaulting on the loan agreement. Furthermore, I kindly request you to consider the following temporary payment reduction options: 1. Temporary Interest Rate Reduction: I understand that the interest rate on my loan is determined according to the prevailing market conditions and the loan agreement. However, I request a temporary reduction in the interest rate for a specific period. This would help alleviate my financial burden while I navigate through this difficult time. 2. Extended Loan Term: Another suggestion is to extend the loan term. By adding extra months or years to my loan term, the monthly payment amount will decrease, making it more feasible for me to make timely payments. This extended term would not result in any additional financial burden for me in the long run. 3. Payment Deferral Option: If a temporary loan payment reduction is not possible, I would appreciate your consideration of a payment deferral option. This would allow me to temporarily pause my loan payments for a specific time frame, giving me a chance to stabilize my financial situation and resume regular payments without significant penalty or detrimental consequences. I would be grateful if you could review my financial situation and take these temporary modification options into serious consideration. As a responsible borrower, I assure you that once my financial situation improves, I will revert to the original loan payment terms and fulfill my obligations promptly. To support my request, I have enclosed relevant financial documentation, including bank statements, pay stubs, and any other supporting materials that demonstrate my current financial hardship. Please treat this information with strict confidentiality. I hope you understand the gravity of my situation and the efforts I am making to honor my loan commitment. You're understanding and cooperation during this time of financial uncertainty will be immensely appreciated. I kindly request an acknowledgement of this letter within [mention the desired time frame]. You can contact me at [Your Phone Number] or [Your Email Address] to discuss any further details, to propose alternative solutions, or if you require any additional documentation. Thank you for your time, consideration, and understanding. I look forward to a positive response from you soon. Sincerely, [Your Name]
Maryland Sample Letter for Request to Creditor for Temporary Reduction of Loan Payment Amount
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How to fill out Sample Letter For Request To Creditor For Temporary Reduction Of Loan Payment Amount?
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Due to (Mention reason- Financial problem/ Personal reason/ any other reason), I request you to kindly allow to make the remaining payment in installments i.e (Amount) every (Month/ Week) in order to clear off the debt.
A "hardship letter" is a letter that you write to your lender explaining the circumstances of your hardship. The letter should give the lender a clear picture of your current financial situation and explain what led to your financial difficulties. The hardship letter is a normal part of the loss mitigation process.
Explain the reasons for your hardship clearly and concisely. Include any supporting documentation that you have (e.g., copy of your unemployment awards letter). Be specific about the remedy you are seeking, and don't promise to send more money than you can reasonably afford.
I sincerely want to keep regular EMI payments but require restructuring in the terms of the loan. I request that the monthly EMI payments to be reduced so I can pay my EMI on before due date in the future without any failure. I would appreciate if you could restructure the EMI amount of my loan to about Rs.
Subject: Request for settlement of my loan. Dear Sir / Madam, I am the holder of Savings/Current Account, A/C No..... (Account Number) in your bank. I was granted a personal loan / business loan / vehicle loan of Rs 10,00,000 by your bank and the repayment period is 5 years and interest rate is 13 percent per annually.
Financial hardship may be deemed to exist when the debtor needs substantially all of his or her current and anticipated income and liquid assets to meet current and anticipated ordinary and necessary living expenses during the projected period of collection.
Dear Creditor: Due to a layoff, I am temporarily out of work and am experiencing financial difficulty. Due to my financial hardship and in order to meet necessary household expenses plus credit payments, I am asking each creditor to accept a reduced payment for the next (#) months on my debt.
Contact the creditor you've selected and ask the requirements for a letter of credit. You'll need to follow the creditor's procedures to get your letter. Provide any documents the creditor requests, such as the agreement you have with the seller and your financial documents.
Tips for Writing a Hardship LetterKeep it original.Be honest.Keep it concise.Don't cast blame or shirk responsibility.Don't use jargon or fancy words.Keep your objectives in mind.Provide the creditor an action plan.Talk to a Financial Couch.
Due to my financial hardship and in order to meet necessary household expenses plus credit payments, I am asking each creditor to accept a reduced payment for the next (#) months on my debt. By that time I hope to be back to work. If my situation improves sooner, I will notify you at that time.
