How a letter to your mortgage company could help
If you have recently run into a problem and been unable to pay your mortgage as a result, there’s a good chance you’re feeling discouraged, disappointed and even hopeless. But it’s important for you to remember that, if you have a legitimate reason for struggling with your mortgage payments, your mortgage company may be willing to work out a loan modification with you in order to get you back on track.
Mortgage companies are only as successful as the people that they lend money to, so many times, they are willing to work with borrowers in order to make the money they lent back. The first step is writing a letter to your mortgage company indicating that you would like them to give you another chance at paying off your mortgage under some new terms. Remember to be honest and forthright in your letter. Continue reading to find out exactly what your letter needs to include.
A sample loan modification request letter to your mortgage company
Date: (List the date)
Name: (List your name)
Address: (List your address)
Mortgage Company: (List the name of your mortgage company as well as the address and your specific loan number)
I, (List your name again), am writing today because I am currently paying off a mortgage through your company. Recently, I have fallen behind on mortgage payments because of a financial hardship that has limited my ability to make monthly payments under the agreed upon terms. I am requesting that you review my current financial situation in order to see if I qualify to work out a new plan for repayment on the mortgage.
I am having trouble making the monthly payments under the previously agreed upon terms because of financial difficulties created by: (enter your specific financial hardship here and a brief description of the problem. Include how the hardship has affected your monthly income and also indicate how long the problem could potentially cause you to suffer financially. Be as honest and direct as possible.) The financial hardship occurred on (enter date) and has affected my ability to pay my mortgage for (enter length of time you’ve struggled to make mortgage payments and also list whether the hardship is temporary or long-term). It is my full intention to keep my home and continue to make mortgage payments on the home in the future. At this time a mortgage modification would be beneficial to this process.
I, (List your name again), state the information in this letter to be true and accurate to the best of my knowledge.
Sincerely,
Borrower’s Signature
Date
Co-Borrower’s Signature
Date
NOTE: Remember to adjust the letter accordingly if you have a spouse or purchased your home with another person who could potentially be listed on the mortgage.
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What you’ll need to include with your mortgage modification letter
While your letter is important,
your mortgage company will also need some other items to prove that you are truly
suffering from a hardship. So, be sure to include:
- Copies of you and your spouses’s 2 most recent pay stubs
- Copies of all your current bank statements, including any savings and checking accounts you and your spouse have together or separately
- The most recent copies of your W-2 forms
- A well-prepared document listing your income, assets and secured and unsecured debts
By including these items, your mortgage company will be able to gauge your ability or disability to pay your mortgage under the current terms. However, your letter is essential because it explains the hardship you’re facing. Continue reading to find out some of the hardships that could qualify you for mortgage modification.
Financial hardships that could qualify you
Not all financial hardships qualify you to make alterations to your original mortgage. However, there are some that are acceptable. They include:
- Unemployment for you or your spouse
- A suddenly reduced income for you or your spouse
- Divorce
- Legal separation
- Medical bills or illness
- The death of your spouse or another family member
- Business failure
- Job relocation
- Military service
- The incarceration of you or your spouse
As you explore these options, you should also check with your state’s housing and mortgage agency to see if there are any other options for mortgage modification due to financial hardships. For instance, New Jersey offers a program that helps those who have defaulted on their mortgage payments.
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Get started now!
If you’re struggling to pay your mortgage every month and think you have a valid reason to modify your original mortgage, don’t delay. You’ll have a much better chance of getting a favorable response from your mortgage company if you prove that you’re taking your mortgage seriously and doing all that you can to pay it off immediately. Of course, it is also important that you deal directly with your mortgage company and avoid any potential mortgage foreclosure scams and get yourself back on the right path.