Sample Hardship Letter for a Mortgage Modification
Hardship Letter:
XYZ Bank
Re: John Jones, 1234 Main Street, USA., loan number 123456789
Gentlemen:
This letter is to advise you that I can no longer make my monthly mortgage payments in the sum of $___________ as I my income has been reduced as a result of the economy and the value of my home has dropped by at least 50%. I would like to keep my home and I am asking for reduced monthly payments and interest rate over the life of the loan. I am also requesting a three month forbearance. [I recommend asking for a modification for the life of the entire loan, otherwise the lender may only give you a short term modification and that might not help you for a long enough period. The forbearance is asking the lender to forgive some of the debt.]
Sample Authorization Letter
[Only to be used if you authorize a third party such as a mortgage broker, attorney or housing counselor to negotiate your mortgage modification on your behalf]:
To whom it may concern:
We hereby authorize Jim Jones or any employees of the law firm of Jim Jones, address, telephone number, to represent us in connection with my loan number 124556789, in the name of John and Mary Smith regarding the property address: 123 Main Street, USA. You are hereby authorized to give Mr. Jones or any of his employees any information regarding my loan and loan balances.
Very truly yours,
John and Mary Smith
[Include the last 4 digits of both borrowers’ social security numbers below the signature line or somewhere in the letter as well.]
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