LOAN MODIFICATION REQUEST LETTER

BORROWER INFORMATION

Date: [DATE]

[MORTGAGE SERVICER NAME]
Loss Mitigation Department
[ADDRESS]
[CITY, STATE ZIP]

SENT VIA:
☐ Certified Mail, Return Receipt Requested
☐ Overnight Delivery
☐ Fax: [FAX NUMBER]
☐ Email: [EMAIL]
☐ Online Portal

RE: Request for Loan Modification

Borrower Name(s): [BORROWER NAME(S)]
Property Address: [PROPERTY ADDRESS]
Loan Number: [LOAN NUMBER]
Last Four Digits of SSN: [XXXX]

FORMAL REQUEST

Dear Loss Mitigation Department:

I am writing to formally request a modification of my mortgage loan on the above-referenced property. I am committed to keeping my home and believe that a loan modification will allow me to resume making affordable monthly payments.

SECTION 1: HARDSHIP EXPLANATION

Current Situation

I am currently experiencing financial hardship due to:

☐ Unemployment/Job Loss
I lost my job on [DATE] due to [REASON]. I have been [seeking new employment/started new employment on DATE at reduced income].

☐ Reduction in Income
My household income decreased by approximately $[AMOUNT] per month beginning on [DATE] due to [REASON: reduced hours, pay cut, loss of overtime, spouse's income loss, etc.].

☐ Increased Expenses
My monthly expenses increased significantly due to [REASON: medical bills, childcare costs, support of family members, etc.].

☐ Medical Issues
I/my family member has experienced [MEDICAL CONDITION] which has resulted in [medical expenses, inability to work, reduced income].

☐ Divorce/Separation
My divorce/separation became final on [DATE], resulting in [loss of spouse's income, increased expenses, legal fees].

☐ Death in Family
The death of [RELATIONSHIP] on [DATE] resulted in [loss of income, unexpected expenses, emotional hardship].

☐ Interest Rate Adjustment
My adjustable rate mortgage adjusted on [DATE], increasing my payment from $[AMOUNT] to $[AMOUNT], which I cannot afford.

☐ Natural Disaster
My property/employment was affected by [DISASTER TYPE] on [DATE], causing [DESCRIBE IMPACT].

☐ Other Hardship
[DESCRIBE HARDSHIP IN DETAIL]

Hardship Narrative

[WRITE A DETAILED BUT CONCISE EXPLANATION OF YOUR HARDSHIP. INCLUDE:
- When the hardship began
- What caused it
- How it has affected your ability to pay
- What has changed or will change that makes you able to afford modified payments
- Your commitment to keeping your home]

SECTION 2: FINANCIAL SUMMARY

Monthly Household Income

Monthly Expenses

Net Monthly Cash Flow

Total Income: $_______
Minus Total Expenses: $_______
Equals Net Monthly Cash Flow: $_______

SECTION 3: LOAN AND PROPERTY INFORMATION

Current Loan Terms

Property Information

SECTION 4: MODIFICATION REQUEST

Requested Modification Terms

I am requesting the following modification to make my loan affordable:

☐ Interest Rate Reduction
Reduce interest rate from _______% to _______% (or market rate)

☐ Term Extension
Extend loan term to _______ years (maximum 40 years from modification date)

☐ Principal Forbearance
Defer $_______ of principal as a non-interest bearing balance due at maturity/sale

☐ Principal Reduction
Reduce principal balance by $_______ to reflect current property value

☐ Capitalization of Arrears
Add past-due amounts of $_______ to the principal balance

☐ Escrow Adjustment
Recalculate escrow to correct shortage/overage

☐ Other:
[DESCRIBE REQUESTED MODIFICATION]

Proposed Modified Payment

Based on my financial situation, I can afford a monthly payment of approximately:

Proposed Monthly Payment: $_______ (PITI)

This represents approximately _______% of my gross monthly income.

Justification for Modification

[EXPLAIN WHY THE REQUESTED MODIFICATION MAKES SENSE FOR BOTH YOU AND THE LENDER. ADDRESS:
- How the modified payment fits within your budget
- Why the modification is sustainable long-term
- How approval benefits the lender compared to foreclosure
- Your commitment to maintaining the modified payments]

SECTION 5: SUPPORTING DOCUMENTATION ENCLOSED

I have enclosed the following documents to support this request:

Income Documentation

☐ Pay stubs for last 30 days (all borrowers)
☐ Most recent 2 years of federal tax returns (all pages)
☐ Most recent 2 years of W-2s
☐ Year-to-date profit and loss statement (if self-employed)
☐ Benefit award letters (Social Security, disability, pension, etc.)
☐ Unemployment benefit statements
☐ Other income documentation: _____________

Asset Documentation

☐ Bank statements for last 2 months (all pages, all accounts)
☐ Investment/retirement account statements

Hardship Documentation

☐ Signed hardship letter (this letter)
☐ Unemployment documentation
☐ Medical documentation
☐ Divorce decree/separation agreement
☐ Death certificate
☐ Termination letter
☐ Other: _____________

Other Documents

☐ Most recent mortgage statement
☐ Property tax bill
☐ Homeowner's insurance declaration page
☐ HOA statement (if applicable)
☐ Completed servicer's loan modification application form

SECTION 6: CERTIFICATIONS

I/We certify that:

☐ All information provided is true, complete, and accurate to the best of my/our knowledge

☐ I/We have experienced a financial hardship that has affected my/our ability to pay my/our mortgage

☐ I/We do not have sufficient liquid assets to pay the past-due amounts

☐ I/We have not been convicted of fraud, money laundering, or tax evasion in the last 10 years

☐ I/We have not intentionally defaulted on the mortgage

☐ I/We understand that providing false information may result in civil and criminal penalties

☐ I/We understand that the servicer may verify any information provided

☐ I/We understand that submitting this request does not guarantee approval

☐ I/We authorize the servicer to obtain credit reports and verify employment and income

SECTION 7: SIGNATURES

Borrower Signature: _________________________________

Printed Name: _________________________________

Date: _________________________________

Co-Borrower Signature: _________________________________

Printed Name: _________________________________

Date: _________________________________

SECTION 8: CONTACT INFORMATION

Preferred Contact Method: ☐ Phone ☐ Email ☐ Mail

Best Time to Contact: ☐ Morning ☐ Afternoon ☐ Evening

Primary Phone: (______) _______ - ____________

Alternate Phone: (______) _______ - ____________

Email Address: _________________________________

Mailing Address:
_________________________________
_________________________________
City: __________________ State: _____ ZIP: ___________

THIRD-PARTY AUTHORIZATION (Optional)

I authorize the following person(s) to discuss my loan modification request:

Name: _________________________________
Relationship: ☐ Attorney ☐ Housing Counselor ☐ Family Member ☐ Other: _______
Phone: _________________________ Email: _________________________

STATE-SPECIFIC NOTES

CALIFORNIA

• California Civil Code Section 2923.6 prohibits dual tracking during modification review
• Single Point of Contact required under Civil Code Section 2923.7
• Right to appeal modification denial within 30 days
• Servicer cannot charge fees for modification application
• AB 2424 (effective 2025) requires clear information about foreclosure alternatives

TEXAS

• Texas Property Code Section 51.002 governs foreclosure procedures
• Home equity loans require judicial process for foreclosure
• Servicer must wait 120 days after default before initiating foreclosure
• Texas Constitution provides strong homestead protections

FLORIDA

• All foreclosures are judicial in Florida
• Florida Statute Section 702.036 requires loss mitigation information in foreclosure complaint
• 20-day deadline to respond to foreclosure complaint (request modification immediately)
• Expedited foreclosure process available to lenders - act quickly

NEW YORK

• Mandatory settlement conferences under CPLR 3408
• 90-day pre-foreclosure notice required under RPAPL Section 1304
• New York Banking Law Section 595-a requires servicers to inform borrowers of options
• Foreclosure Abuse Prevention Act (FAPA) affects statute of limitations

NEXT STEPS

After submitting this request:

1. ☐ Confirm receipt with servicer
2. ☐ Provide any additional documents requested within 30 days
3. ☐ Follow up weekly on application status
4. ☐ Keep copies of all correspondence
5. ☐ Note names and dates of all phone conversations
6. ☐ Review any trial modification offer carefully before accepting
7. ☐ Make all trial modification payments on time
8. ☐ If denied, request written explanation and appeal within timeframe
9. ☐ Consider consulting with HUD-approved housing counselor or attorney

TRACKING LOG

This template is provided for educational and informational purposes only. Loan modification approval is not guaranteed and depends on investor guidelines, servicer policies, and individual circumstances. Contact a HUD-approved housing counselor at 1-800-569-4287 for free assistance with your modification request.