Loan Modification Request
Ask a lender to permanently change an existing loan's terms — rate, length, or payment — because the current terms no longer work.
USPS First-Class Mail® · one flat price, shown before you pay
What is a loan modification request?
A loan modification request asks a lender to permanently change the terms of an existing loan — the interest rate, the length of the term, or the monthly payment — rather than pause or restructure repayment temporarily. It's aimed at a lasting fix when the original terms are no longer sustainable, whether because of a permanent change in income or because the loan's original terms were simply unaffordable from the start.
Unlike forbearance, which is explicitly short-term, a modification changes the loan going forward — which is why lenders generally expect a clear, demonstrated reason the current terms don't work, not just a temporary setback.
When should you send one?
This fits when your situation has changed in a lasting way, not a short-term dip you expect to recover from.
- A permanent or long-term reduction in income
- Terms that have become unaffordable and aren't expected to become affordable again on their own
- You've already tried or ruled out shorter-term options like forbearance
- You want a specific, lasting change — a lower rate, a longer term, a different payment structure
What to include
Explain clearly why the current terms are unaffordable, and state specifically what modification you're requesting — a lower interest rate, an extended term, a restructured payment. A vague request for "help" is harder for a lender to act on than a concrete, specific ask.
What you'll need
- Lender name
- Reason for the request
- Requested terms
Tips for a strong letter
- Be specific about the modification you want — "lower my rate to X" or "extend the term by Y years" gives the lender something concrete to evaluate
- Explain why the change is durable, not just a short rough patch — that's what separates a modification request from a forbearance request
- Expect to provide financial documentation to support the request; lenders generally need to verify your ability to pay under the new terms
- If you've already tried forbearance or a payment plan and it wasn't sufficient, mention that history
- Follow up in writing on any verbal terms discussed before treating a modification as final
What happens after you send it
Loan modifications typically require a more thorough review than a short-term relief request, often including a financial documentation package and an evaluation period. Lenders may approve the request as proposed, offer different terms, or decline — get any approved modification in writing before considering the matter settled.
Frequently asked questions
How is this different from forbearance?
Forbearance is a temporary pause or reduction meant to end with a return to the original terms. A loan modification permanently changes those terms — a different tool for a lasting, not temporary, affordability problem.
Will a loan modification hurt my credit?
It depends on how the lender reports it and whether you were already delinquent beforehand — a modification completed while current on payments is generally less damaging than one following missed payments. Ask your lender directly how it will be reported.
What documentation should I expect to provide?
Typically income verification, bank statements, and a written explanation of your financial situation — lenders need to confirm you can sustain the new terms before agreeing to them.
GoodwillLetter is a document preparation and mailing service — not a law firm — and does not provide legal advice.
Ready to send your loan modification request?
Answer a few questions, review the letter, and we print and mail it via USPS First-Class Mail®.