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Loan Modification Hardship Letter

A loan modification hardship letter is used by a borrower to request a temporary or permanent change in the terms of repayment due to financial hardship. Requested changes can include a reduced monthly payment, a lower interest rate, or forgiveness of late fees. This letter is commonly used for mortgages and other types of consumer loans.
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Ben Jones
1234 Glass Way
Los Angeles, CA 90021
ben.jones@gmail.com
(213) 987-6543Nov. 2, 2022

Quick Loan Co.
444 Monetary Rd.
Los Angeles, CA 90021

To Whom It May Concern:

I am writing this letter to request a modification on my loan due to unforeseen financial hardship. When I was initially approved for this loan in 2018, my gross monthly income as a construction worker was $3,800. However, after injuring my neck on a bike accident a few weeks ago and consequently losing my job, I’m currently unable to sustain an income to continue making the $800 monthly payments on my loan.

In addition to losing my job, I am facing nearly $20,000 in medical bills from the accident, and with my weekly physical therapy sessions, that amount is only growing. Until I recover from my injuries and am able to begin working again, I will not be able to secure a full-time income. As such, I am requesting that my monthly payment amount is reduced from $800 to $400 for the next six months.

Please find attached a copy of my medical bills, accident report, bank statements, and employment termination letter. Thank you for your time and consideration.

Sincerely,

Ben Jones