A loan workout is a series of steps taken by a lender with a borrower to resolve the problem of delinquent loan payments. Steps can include rescheduling loan payments into lower installments over a longer period of time so that the entire outstanding principal is eventually repaid. One of the items lenders often ask for during the loan workout or loan modification process is a hardship letter. A hardship letter is a written explanation as to what has caused you to fall behind on your mortgage. Some of the hardships that that lenders consider during the loan workout process are the following: Illness; Loss of Job; Reduced Income; Failed Business; Job Relocation; Death of Spouse or Co-Borrower; Incarceration; Divorce; Military Duty; and Damage to Property (e.g., natural disaster or fire).
Title: North Carolina Request for Loan Modification Due to Financial Hardship — Change from Adjustable to Fixed Rate of Interest Introduction: If you are a homeowner in North Carolina experiencing financial hardships and struggling to meet your monthly mortgage payments, you may be eligible for a loan modification. This letter aims to guide you in composing a detailed request to your lender or loan service, specifically seeking a change from an adjustable rate of interest to a fixed rate. Keywords: North Carolina, loan modification, financial hardship, adjustable rate, fixed rate, lender, loan service, request Sample Content: [Your Name] [Your Address] [City, State, ZIP] [Email Address] [Phone Number] [Current Date] [Loan Service/Lender's Name] [Loan Service/Lender's Address] [City, State, ZIP] Subject: Request for Loan Modification Due to Financial Hardship — Change from Adjustable Rate to Fixed Rate of Interest Dear [Loan Service/Lender's Name], I am writing to formally request a loan modification agreement in response to my financial difficulties caused by [briefly describe your financial hardship, such as job loss, illness, or other relevant factors]. I believe that modifying the terms of my existing home loan to change my adjustable rate of interest to a fixed rate will greatly alleviate my financial burden and help me maintain homeownership. Loan Information: Loan Account Number: [Your Loan Account Number] Property Address: [Your Property Address] Original Loan Amount: [Original Loan Amount] Current Interest Rate: [Current Interest Rate] Adjustable Rate Period: [Adjustable Rate Period] Reason for Request: I am facing significant financial challenges due to the aforementioned reasons, making it difficult for me to afford my monthly mortgage payments under the current adjustable rate terms. By converting my loan to a fixed rate of interest, I will be able to better plan my finances, stabilize my monthly payments, and avoid any future uncertainties associated with an adjustable rate. Financial Situation: To provide you with a comprehensive understanding of my financial predicament, I have enclosed the following supporting documents (attach relevant documents, such as recent pay stubs, tax returns, bank statements, and any other financial records): 1. Proof of Income: [Attach your recent pay stubs or proof of regular income] 2. Asset and Liability Statement: [Outline your current assets and liabilities] 3. Financial Hardship Explanation: [Provide a detailed explanation of your financial hardships] 4. Monthly Budget: [Include a comprehensive breakdown of your monthly income and expenses] My sincere hope is that you will review my case and carefully consider granting my loan modification request. I am committed to repaying my mortgage and preserving my home by maintaining a stable and affordable payment plan. Loan Modification Proposal: In order to overcome the financial challenges I currently face, I propose the following terms for my loan modification: 1. Conversion of Interest Rate: Change my adjustable rate of interest to a fixed rate of interest. 2. Fixed Rate Period: Specify the desired duration for the fixed rate period. 3. Reduction of Monthly Payments: Adjust my monthly payments to a more affordable level based on my financial situation. I kindly request that you promptly evaluate my proposal and respond with a loan modification agreement that meets my needs. I am open to engaging in further discussions, providing additional documentation, or working with a credit counseling agency to facilitate this process. Furthermore, I appreciate your attention to my request and look forward to your prompt response. Should you require any further information or have any questions, please do not hesitate to contact me at the provided phone number or email address. Thank you for your understanding and consideration during this challenging time. Sincerely, [Your Name]Title: North Carolina Request for Loan Modification Due to Financial Hardship — Change from Adjustable to Fixed Rate of Interest Introduction: If you are a homeowner in North Carolina experiencing financial hardships and struggling to meet your monthly mortgage payments, you may be eligible for a loan modification. This letter aims to guide you in composing a detailed request to your lender or loan service, specifically seeking a change from an adjustable rate of interest to a fixed rate. Keywords: North Carolina, loan modification, financial hardship, adjustable rate, fixed rate, lender, loan service, request Sample Content: [Your Name] [Your Address] [City, State, ZIP] [Email Address] [Phone Number] [Current Date] [Loan Service/Lender's Name] [Loan Service/Lender's Address] [City, State, ZIP] Subject: Request for Loan Modification Due to Financial Hardship — Change from Adjustable Rate to Fixed Rate of Interest Dear [Loan Service/Lender's Name], I am writing to formally request a loan modification agreement in response to my financial difficulties caused by [briefly describe your financial hardship, such as job loss, illness, or other relevant factors]. I believe that modifying the terms of my existing home loan to change my adjustable rate of interest to a fixed rate will greatly alleviate my financial burden and help me maintain homeownership. Loan Information: Loan Account Number: [Your Loan Account Number] Property Address: [Your Property Address] Original Loan Amount: [Original Loan Amount] Current Interest Rate: [Current Interest Rate] Adjustable Rate Period: [Adjustable Rate Period] Reason for Request: I am facing significant financial challenges due to the aforementioned reasons, making it difficult for me to afford my monthly mortgage payments under the current adjustable rate terms. By converting my loan to a fixed rate of interest, I will be able to better plan my finances, stabilize my monthly payments, and avoid any future uncertainties associated with an adjustable rate. Financial Situation: To provide you with a comprehensive understanding of my financial predicament, I have enclosed the following supporting documents (attach relevant documents, such as recent pay stubs, tax returns, bank statements, and any other financial records): 1. Proof of Income: [Attach your recent pay stubs or proof of regular income] 2. Asset and Liability Statement: [Outline your current assets and liabilities] 3. Financial Hardship Explanation: [Provide a detailed explanation of your financial hardships] 4. Monthly Budget: [Include a comprehensive breakdown of your monthly income and expenses] My sincere hope is that you will review my case and carefully consider granting my loan modification request. I am committed to repaying my mortgage and preserving my home by maintaining a stable and affordable payment plan. Loan Modification Proposal: In order to overcome the financial challenges I currently face, I propose the following terms for my loan modification: 1. Conversion of Interest Rate: Change my adjustable rate of interest to a fixed rate of interest. 2. Fixed Rate Period: Specify the desired duration for the fixed rate period. 3. Reduction of Monthly Payments: Adjust my monthly payments to a more affordable level based on my financial situation. I kindly request that you promptly evaluate my proposal and respond with a loan modification agreement that meets my needs. I am open to engaging in further discussions, providing additional documentation, or working with a credit counseling agency to facilitate this process. Furthermore, I appreciate your attention to my request and look forward to your prompt response. Should you require any further information or have any questions, please do not hesitate to contact me at the provided phone number or email address. Thank you for your understanding and consideration during this challenging time. Sincerely, [Your Name]
