Sample Loan Modification Request Form

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Below is an example of a loan modification request form:

Date

Loss Mitigation Department / Legal Department

[INSERT BANK NAME]
[INSERT BANK ADDRESS LINE 1]
[INSERT BANK ADDRESS LINE 2]
REF: Borrowers: [YOUR NAME(S)]
Property: [SUBJECT PROPERTY]
Loan No: [LOAN NUMBER]
LOAN MODIFICATION REQUEST
Proposal: [PROPOSE NEW TERMS IN THIS SECTION] EXAMPLE:

*A Competitive interest rate of 2% FIXED, STEP LADDER PROGRAM.

Max Rate after the fourth year at 5%, Amortized in 30 YEARS thereafter,
to capitalize past due amounts, legal fees, escrow deficiency, if any, etc.

Hardship: [SUMMARIZE HARDSHIP IN THIS SECTION] EXAMPLE:

*We are not looking to relinquish our responsibility, but rather, we are looking for a Loan Modification and / or Workout Plan equitable to our financial situation. With our already increased living expenses, and an Interest Rate that is set to adjust, the new payment will become unaffordable and difficult for us to maintain.

Market Value:

*Current Existing Balance: $ [YOUR CURRENT BALANCE]
*Current Fair Market / New Principal Balance: $ [TODAY’S MARKET VALUE]
*(Supporting Documents Included)
*Principal Balance Reduction: $ [REQUESTED REDUCTION AMOUNT]

Request Details: [INPUT YOUR CURRENT AND PROPOSED DETAILS HERE] EXAMPLE:

Current Interest Rate: 6.00% Requested Fixed Interest Rate 2.00%
Current Loan Type: Option Arm, ARM ect… Requested Loan Type: Step Ladder Program Amortization Remaining: 323 Month
Requested Amortization: 30 Years
Previous Payment: $1000.00
New Payment: $1075.00
Late Fees / Penalties FORGIVEN / WAIVED
Late Balance: INCL IN NEW PRINCIPAL BALANCE Requested Next Payment Date: 2 Months

Please find the following for you to proceed with the Loan Modification and / or Loan Restructuring Request:

* Mortgage Statement
* Market Value Documentation
* Hardship Letter
* Financial & Budget Worksheet:
* Income Documentation:
* Bank Statements

Thank you for your assistance in this matter,

Sincerely,

Please continue to the next post and click on the link to download a copy of the loan modification request form.
 
Last edited by a moderator:

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
Click on the link below to download a copy of the loan modification request form:
 

ohhhdear

LoanSafe Member
Apr 26, 2009
422
5
0
Florida
Evan,

All this is GREAT STUFF!

I love examples!!


Are you doing the forensic audit examples, too?

Thanks for all you do!!!!! :)
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,851
466
1,000
49
Southern California
www.loansafe.org
Hey ohhdear. Evan must have missed your question, but I'll answer for him. YES! We will have an example audit in here soon with video's etc.
 

caldwell02

LoanSafe Member
Jan 30, 2010
2,491
18
0
70
That's great, Moe and Evan. Since I sent in a QWR, I'm going to need this forum to decipher what I get back from them...
 

ohhhdear

LoanSafe Member
Apr 26, 2009
422
5
0
Florida
Hey ohhdear. Evan must have missed your question, but I'll answer for him. YES! We will have an example audit in here soon with video's etc.
Thank you so much Moe! You have been a Godsend!

By the way-- that was me who blind copied you on an email I sent to NACA.
I hope you don't mind.

Thanks again and again--a million times for all you do..

I see Melanie said on another post that she was your number #1 pain. Maybe I am your #2 pain! :)
 

caldwell02

LoanSafe Member
Jan 30, 2010
2,491
18
0
70
I had a terrible talk with Chase today - terrible in that I got a real live idiot. I'm also looking forward to the audit information. I heard on another thread that one of our members sent a QWR to Chase and only got part of the info back. So we need to be prepared for that. I've had a tough day with this. Trying to decide whether to drive the 7 hrs to the Oakland Naca event in two weeks while I have a QWR request in (assuming they accept the letter. Part of me is expecting it to come back rejected and unopened). So - just a bit of a ramble right now. but I'm in one of those moods. And Kevin Winn never called back. First time. I was feeling so privileged - he had always called me back - but not this time. I'll try again next week. Oh my apologies - more ramble. I wish some of you were here. I'm an empty nester and sometimes its just overwhelming.
 

mintdeer

LoanSafe Member
Sep 9, 2009
123
0
0
Thank you so much for these example letters, they are so much better and more professional than anything I could come up with. Your site has really helped me out a lot!
 

UnderwaterinLA

LoanSafe Member
Jul 18, 2010
3
0
0
Thank you for this example. I'm new to this forum and am compiling my application package this week. I'm using the Chase loan modification application form (downloaded from the web site) and I don't see anything on the checklist of documents required about a request for modification form. I also don't see anything about providing an income and expenses form (only a P&L for self employment business income). Should I just include these separate letters and documents anyway?

Also, should I request a principal reduction in my proposal for a modification? I've heard that some banks are doing it (reluctantly). Is it matter of you get what you ask for?
 

chris12

LoanSafe Member
Nov 23, 2008
22
0
0
"*A Competitive interest rate of 2% FIXED, STEP LADDER PROGRAM.

Max Rate after the fourth year at 5%, Amortized in 30 YEARS thereafter,
to capitalize past due amounts, legal fees, escrow deficiency, if any, etc."

Are these good terms to propose today? I have tried to get a mod in the past, and they agreed but wanted to give me an arm with a high cap. I currently have a 30 year fixed @ 6.625 with a $580k balance. Just p&i are $3800/month.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,851
466
1,000
49
Southern California
www.loansafe.org
These terms are quite typical and I feel a great start to give someone a mortgage break so they can then focus their attention on making money and increasing their incomes. Hence, you may want to take it so you can focus on more productive life endeavors like making money and jobs.