What is an Award Letter?

What is an ward letter? We are in the process of a loan modification. This term was mentioned and I was un sure what it means.

3 Answers

I am pretty sure what the lender is asking is an Award Letter.  When doing a loan modification most lenders will verify the income so substantuate the reason for the loan modification. 

The Award Letter would be provided by a source such as Social Security, Disability, Retirement, etc.  You must have implied to the lender that your income received each month is from this type of source.  

If you dont have an award letter available, you should contact the source in which you receive the income and request a copy of the document to avoid any delays in the processing of the loan modification.  Then call the lender doing the modification and advise that you have requested the document.  Keeping the lender informed of the status is critical so that you do not jeopordize the possibilty of your loan being modified.

If you are in the process of a loan modification from your current lender or your mortgage servicing company, the mortgage company will request income documentation to process your request.  Typically they'll require tax returns, W2s, current pay stubs, and in your case, based on your question, an awards letter.  The most common type of awards letter is from the Social Security Administration.  It states the terms of the benefits you'll receive, and will typically be sent to you on a yearly basis.  The letter states the monthly amount of your award as well as any deductions for insurance premiums paid by the Administration.

If you receive Social Security income, disability income, pension income, or another type of fixed income payment, you most likely received an awards letter detailing your income.  You may also be asked to produce your monthly bank statements showing the income if it is received by direct deposit, or the check stub if it mailed to you.

I hope this helps, and you get your modification approved.

I believe you are being asked for an Award Letter.  An Award Letter is typically issued from the Social Security Administration annually and identifies the amount of your monthly benefits.  The Social Security Administration issues Award Letters for either your Social Security Income (SSI) or your Social Security Disability Income (SSDI).

Award Letters may be issued by other entities as well, but are normally used for non-employment income.  Some Award Letters are issued annually, while others may be issued only at the of the initial award of the benefit. 

You should keep a copy of each of your Award Letters at least until you receive any updated copies in the future.  If you do not have a copy of your Award Letter, contact the entity that issues it and they should be able to provide you with another copy.