When applying for a loan modification you will be required to provide the lender with a hardship letter. This can be the hardest part for a homeowner because many are not sure what to write and some become overwhelmed.

Here will be a sample of a hardship letter that will explain the basic feel that should be used in the letter. Provided is a sample hardship letter along with instructions for what one should bring up in their own letter. The lender needs this letter to see if you qualify for the loan, everyone’s letter will be different with different reasons as to why they need a loan modification, in order for the lender to take your situation seriously you must also tell your story.

Account number: [Your loan number]

[The name your loan is under, usually your own.]
[Your residential address, which is also the address you are requesting loan modification on. Loan modifications are not allowed for properties that are not lived in.]
[Your phone number and email]

To Whom It May Concern: (Or the persons name if you know it.)
[Explain the reason for the loan modification in the hardship letter.]
The reason for this letter is to explain the reason I/we have fallen behind on the mortgage payments. I am requesting that you work with us/me on a loan modification. I/we have come across some hard times that are making everything a struggle. I/we would like to work out a plan with you and possibly work out different terms on the mortgage so we can stay in our home.

[Keep the explanation of the reasons short and to the point. Try to limit it to about one paragraph.] I lost my job a few months back and have not be able to find anything that pays enough to pay all of my bills or other expenses. I had some savings that I have been using to try to stay afloat but that is now gone. I have however found a position that pays well enough to get back on my feet and am scheduled to begin working in a few days. My spouse, who pays half of our monthly expenses, has fallen ill with X and can no longer work because of the medical treatment. Fortunately the doctors expect a full recovery within 6 months. Although it is great that my spouse will recover, the medical treatment being used is expensive and we can not afford to pay our other expenses along with the medical treatment.

[Explain your come back plan.]
After doing the math I have come to the conclusion that with my new position I will be able to pay monthly expenses including the mortgage payment of $X. As soon as my spouse recovers from her illness we will be financially stable again however until that day comes we will be a little strapped for money. If possible we are requesting [Ask for exactly the loan modification agreement you feel you can handle and they will approve of]

Thank you for you patience and time. Thank you for looking over my situation and considering the home loan modification plan that will help us get back on our feet.

Sincerely, [Signature]

What we have written above is just a sample letter, make sure you remember this. When writing a hardship letter for a home loan modification it is a good idea to go a little deeper into your story but make sure not to make it into a tear jerker. While you may feel that if you pull some heart strings you will have a better chance of being approved, however the reality is the lenders don’t want to hear it. The lenders are just trying to determine if you are at risk of defaulting again.

-M Petrone

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