The hardship letter can be the most intimidating part of the loan modification application process, and unfortunately most homeowners are lost on what exactly needs to go into a hardship letter for loan modification.
This sample hardship letter is to give you a basic feel for what you should include in your own hardship letter. There is a sample letter as well as instructions as to what you should bring up in each section. Everyone has a different story concerning their financial hardship, and you need to tell yours in order for your lender to take your loan modification proposal seriously.
Account number: [Your loan number goes here]
[The name your loan is under, usually your own.]
[Your residential address, which is also the address you are requesting loan modification on. you cannot get a loan modification on a piece of property you are not living on.]
[Your contact information, like phone number and email]
[If you know the name of the person who is going to read the hardship letter, use that, if not...]
To Whom It May Concern:
[Clearly state why you are writing this hardship letter for loan modification. Choose either we or I, it is your preference.]
I am writing this letter to address the reasons behind my falling behind on my mortgage payments with you and to formally request you work with us on a loan modification. I have fallen under various circumstances that have made it difficult to make even the simplest ends meet. I would like to work with your institution to meet more reasonable terms on my mortgage and stay in my home.
[Give a brief look into why exactly you cannot afford your monthly payments. Don't go into a big story -- try to keep it to one paragraph.]
I was laid off a couple of months ago and had been unable that pays well enough to afford all of my monthly expenses. I had kept up for the past two months through my savings, which has run dry. However, last week I acquired a position at a company that pays comparatively in comparison to my old position and I am to start in a couple of days. My wife, who had paid half of all the monthly expenses, has been diagnosed with X and cannot work anymore until she has been treated successfully. Luckily the doctors say she should be fine in about six months, but unfortunately we do not have enough to make ends meet and afford treatment as it is now.
[Explain how you are planning to get back on track.]
I did some calculations, and my new job will be providing enough to afford my monthly expenses as well as a monthly mortgage payment of $X. Once my wife is better we will completely financially stable again, but until then things are more than a little tight. We are requesting [State exactly the loan modification agreement you feel you can handle and they will approve of]
Thank you for your time and consideration, and I look forward to working with you towards an agreement that we can both handle.
Sincerely,
[Signature]
Remember, this is just a sample hardship letter for loan modification to get you started. You can go even more in depth with your letter -- as a matter of fact, it's recommended, but do not go into a long and drawn out story. Your lender will see that as a mound of excuses and could very well deny you based on it.
If you're interested in additional sample hardship letter templates to fit your specific situation, visit my simple, no nonsense loan modification guide and resource: http://Home-Loan-Modifications.info
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