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Required documentation for a loan modification usually includes a formal application, pay stubs, financial statements, proof of income, bank statements, and tax returns, as well as a hardship statement.
The loan modification process can vary from lender to lender, but in general most programs will require similar steps: Step 1 Gather information about your financial situation. ... Step 2 Reach out to your lender. ... Step 3 Check the qualifications for loan modification. ... Step 4 Complete an application.
Sample Loan Modification Letter I am writing to request a loan modification in order to continue making payments on my loan. The account number is . Based on my and expenses, I cannot make my loan payments. In place of my payment of per month, I ask that you alter my payments to , which will be paid .
Modifications could be denied for income that is not sufficient, a poor loan to value ratio, or missing information on the modification.
Example: The monthly payments on a 30-year, fixed mortgage for $200,000 are $1467.53 at an eight percent interest rate, but, if that rate is just one percentage point lower, at seven percent, the monthly payment drops to $1330.60 ? a difference of $136.93 each month.
Often, a homeowner won't get approved for a loan modification unless there is evidence of one or several missed payments. Those missed payments hurt your credit score. A home loan modification does the same.
Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.