A mortgage agreement is important to follow. If you are not able to pay the lender on time, they can take away your property. This is unless you provide them with a letter of explanation for the late payment of the mortgage.
What is a letter of explanation for late payment of the mortgage?
A letter of explanation for late payment of a mortgage is a letter that a person will write to their lender informing them that they need more time to pay the lender back. In the letter, the person will explain why the payment will be late so that the lender can accommodate them.
Importance of a letter of explanation for late payment:
A letter of explanation is important because it allows an individual to formally explain to the lender why they are late on payment of the mortgage. In the letter, the person can convince the lender to not take action against them. You will be providing convincing reasons why you are not able to pay your mortgage on time so that the lender can accept the request. The letter will let the lender know why you have been late on mortgage payments.
When to write?
The letter can be written before the date when the individual needs to pay their mortgage payment. In this way, the lender will know beforehand that you will be late on a payment.
Benefits of a letter of explanation
The letter of explanation for the late payment of the mortgage is beneficial due to the following reasons:
It allows an individual to explain why they will be late on a payment:
When you have entered into a mortgage arrangement, you will have to follow it if you do not want to face complications. If you are not able to repay the money that you borrowed along with the interest, the lender has the right to take away your property. However, if you inform the lender that you will be late on a payment, they may excuse you for a certain amount of time. They may give you some time to arrange to pay them back. The letter will try and convince the lender to agree to allow you to pay late.
Proof that you informed the lender:
Any complication may arise whereby the lender may claim that you did not inform them that you will be paying late. If this occurs, the letter can be taken out. If the lender needs to consult this letter at any time due to complications, they can do so easily.
It allows the lender to know that you want to pay late:
The lender must know that you will not be able to pay mortgage payments on time. If they do not know this, they may take action against you. They may think that you will not be paying them. When you inform them with a letter of the reasons why you will be late on a payment, they can consider whether to accept your request and not take away your property. They can arrange what to do next when they know that you will be late on a payment.
Sample letter of explanation for late payment of mortgage:
Subject: Late payment of the mortgage [XYZ]
Dear Mr./Mrs./Miss (Name of the receiver),
I am (tell your name) and have taken a mortgage from you on (tell when you took the mortgage). I am supposed to repay this by (tell when you are supposed to repay the mortgage by). However, I will not be able to do this.
When I took the mortgage from your company, I was employed and had a good salary. However, due to the recent recession in the country, my company reduced the salaries of many employees. I am one of them. It is tough handling all expenses and will be difficult for me to repay the mortgage on time. (You will tell the reason why you need to pay late trying to convince the reader to agree to let you pay late).
I sincerely apologize for any inconvenience that this will cause and hope that you will cooperate with me. You can contact me at (state your phone number) if you need to discuss anything.
Thank you in advance,
Sample Letter File 34 KB
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