A Sample Loan Modification Hardship Letter

Life does not always do what we need it to do, and sometimes, unexpected occurrences can take a heavy toll on the lives we lead.

A mortgage payment is a cornerstone in the structure of your life, and when it is threatened, it is very easy to feel as if everything is teetering. Even if you do not need to delay payment entirely, you may need to modify your payments for a short period, and this is where a loan modification hardship letter comes in.



What is a loan modification hardship letter?

A loan modification contribution letter accomplishes a few things. It lets the bank know that you are not going to default on your payments, it tells the bank that you are aware of the issues that are occurring, and it lets the reader know that you are ready, willing and able to do what you can, even if it is not everything that the terms of your mortgage laid out. When you are looking at a hardship letter, loan modification is just one of the goals that can be accomplished.

What are some of the tips that you can use to write a hardship letter that will get the results you need?

Be Honest

The contibutionĀ letter is designed to give the loan officer an insight into your life and to help them figure out why you fell behind on the loans. They are not looking for excuses, they are looking for reasons, so be as honest as you can be. Do not be embarrassed to be truthful; remember that this is their job and that they hear the same stories over and over again.

Show Change

So why should the bank give you a modification if you have been behind for several months? The answer that you must provide for them is that your life has changed. Perhaps after being out of work for a while, you found a new job. You may have added roommates to the situation to create more cash flow, or perhaps you have sold another piece of property. Make sure that you explain clearly why you will be able to make a loan modification work for you.

Be Clear About What You Need

If you explain the situation that has occurred, you must also be willing to be clear about what you need to happen. Don’t offer figures yet, as that will come in the followup call, but do not simply make the letter all about the hardships that have happened to you. Make sure that you ask for a loan modification quickly and clearly in the first paragraph.


Remember that humility is an important part of asking for a loan modification. Apologize for the situation, and make it very clear that it will not happen again. This demonstrates sincerity, and it helps them see you as a person who is invested in change.

Actually Do It!

One of the issues that affects people who need to write a hardship letter is procrastination. A sense of embarrassment overtakes them, or they start to feel depressed and downhearted about the whole thing. They think that there is no way that they are going to get the help that they need, and they start feeling as if there is no point.

The truth is that a hardship letter is one of the best tools that you can use to stay in your space after times have been hard. It is always better to try to fix things than to give up, so consider what this letter can do for you. Simply typing out the letter and sending it can open the door to vast and important change.

Look at a Sample

If you have never written a hardship letter before, it is a good idea to look at a sample hardship letter for loan modification to see how one might read. It is always a good idea to look at samples, so consider the letter below. Use it as a template for your own writing, though of course you should always be as specific about your case as you can be.


John and Jane Doe
1234 Mockingbird Lane
Milwaukee, WI 53202
United States Savings, Loan and Trust
Loan Number: 1234567890

To Whom It May Concern:

In this letter, we would like to explain to you the situation that has caused our recent difficulties with our loan payments, and we would like to be considered for a loan modification that would reduce our payments and recapitalize or forgive the payments that have gone unpaid in the past few months. Our ultimate goal is to ensure that we may continue to keep our home and to continue paying for it in a timely and responsible fashion.

During March and April of 2014, our household encountered serious difficulties when we lost our jobs within two weeks of each other. At that time, we were able to use our savings for the mortgage payments. However, as our job hunts continued, that money was depleted, resulting in the derelict payments of the last two months.

However, this month, both of us have found work again. The situation is again stabilized, and we are eager to pay what we owe. This recent hardship has taken quite a toll on our family, and though things are not completely recovered yet, we are almost there!

We truly hope that are willing to work with us on this matter. We want nothing more than to stay in our home and to continue paying our mortgage. Circumstances are now such that we are able to do so if we can get a favorable loan modification.

We are sincerely sorry for falling behind on the payments, but as you can see, the circumstances have changed. If you look at your records, you will see that before this year, we have had no problems with late mortgage payments before.

Once again, we apologize for the recent hardships that have led to derelict payments, and we hope we can come to a resolution on this matter that is favorable for all parties.

John and Jane Doe

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