Request a change in your loan payment terms: Loan Modification Letter
What is a Loan Modification Letter?
A Loan Modification Letter is written to your mortgage or loan provider to request a permanent change in your loan payments. A typical Loan Modification Letter outlines your situation before the financial hardship occurred, and then describes your current financial situation and why you are unable to adhere to your original loan terms. Some common reasons for writing a Loan Modification Letter include injury, loss of job, economic downturn, an illness to you or a family member, etc.
Making a Loan Modification Letter allows you to seek relief from your lenders when your financial situation changes. Unlike a forbearance, which is typically temporary, a loan modification permanently alters your loan payment plan and is a long-term solution if you do not think your financial situation will improve. A Loan Modification Letter can be used for business or personal loans.
When to use a Loan Modification Letter:
- You have suffered a loss of income and want to amend your loan payment.
- You recently lost your job and cannot continue making your current monthly loan payments.
- Your business has experienced a loss in revenue and you need to request relief.
- You have exhausted all other financial resources and need new loan terms.
Have questions about your Loan Modification Letter?
Whether you're preparing your Loan Modification Letter, reviewing one someone sent you, or just want to understand it better, here's how to get help.
- Understand what it says or review it. Use our AI legal assistant to ask questions about your Loan Modification Letter, understand what it says, and spot anything that may need a closer look.
- Ask an attorney a question. Connect with an attorney for legal information, with a written answer within one business day or a live consultation.
- Get advice on what to do. For privileged, confidential advice about your specific circumstances and next steps, book a Legal Advice Session with an attorney.
Sample Loan Modification Letter
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Dear ,
I am writing to request a loan modification in order to continue making payments on my loan. The account number is .
my company's revenue is because I currently make because
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 .
I can be contacted at or . Thank you for your understanding and consideration.
Sincerely,
| ______________________________ | Date: ________________________ |
