Sample Hardship Letter for Mortgage Modification

Date
Your Name
Your address:
Your Bank’s Name
Loan number: 123456789

To Whom It May Concern:

This letter explains the difficult situation which caused me to fall behind on my mortgage payments. I would like to be considered for a loan modification to decrease my payments, fix my interest rate at a lower rate, and recapitalize or forgive the delinquent payments in order to get me caught up and prevent future delinquency. My main goal is to keep my home for the long term.

I work for (employer) as a (job title). (If more than one borrower, include this information for each co-signer/borrower.) I (we) hit hard times recently and fell behind on my (our) payments because (explain your reason here). Since that time, (give the reason hardship is over or improving). My (our) income is now (stabilized, improving, et cetera).

Despite my (our) recent hardship, it is my (our) full intention to pay what I (we) owe. Now that things are (improving, stabilized, et cetera), I (we) would appreciate your consideration to lower my (our) payments, help us get caught back up, and fix the interest rate so that I (we) can afford to stay in my (our) home for the long term.

I (We) really hope you will work with me (us) on this. Please help me (us) come up with a solution quickly to resolve the current delinquencies and prevent problems down the road.

Sincerely,
(Your Signature)
(Your Name)

Additional Thoughts on Hardship Letters

Writing a good hardship letter is possibly the single most important factor in whether a loan modification application gets approved or not. State your case by answering the following questions:

What kind of modification would you (or the borrower, if you’re a third party loan mod consultant) like?
Why did you (they) fall behind?
Why is your (their) situation is stabilized or better now?

Remember to keep the tone fairly positive, which can be difficult given the nature of the subject you’re writing about. Make it seem as though you are a solid borrower who simply happened to hit a bump in the road, and that a modification will be just the thing to make everything right again.

Keep the letter succinct. Long, excuse-filled letters can end up getting skimmed or ignored by the bank’s loss mit department. Keep it to one page. If the letter extends into multiple pages, go back and edit all but the most important facts. Don’t get too emotional in tone either. If you’re a loan modification consultant (i.e. mortgage broker, attorney, realtor, et cetera), keep the voice in first person for the borrower (i.e. I, me, and we), and always have your client sign it personally. A handwritten hardship letter can seem more personal, as it can seem less likely to have come from a third party or a template (even if it did).