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The Mortgage Modification Guide

How to Write a Letter of Hardship

We hope that this page is helpful in your fight to stay afloat. We don't recommend that you use these letters word for word. These sample letters are meant to give you an idea of what a sample hardship letter should look like. If you'd like to see a sample hardship letter please see Sample Hardship Letter

First of all you want to make sure that you give all the information the agent needs to pull up your file right in the beginning. It should look something like this.

Name: Joe Smith
Address: 123 Name St, Anywhere CA 12345
Property Address(if different):
Phone: (000) 000-0000
Email: Example@mail.com
Lender Name:
Loan #:

You can put the date before or after this, or at the end after your signature.

As for the content you want to make your intentions very clear so you should start out by stating your intentions. You want to state the situation you are in and/or were in and how it is effecting your finances. If you are wondering what kind of things are acceptable reasons for renegotiating your mortgage, here is a short list:

  • Adjustable Rate Mortgage Reset- Payments getting to high
  • Illness/Medical Bills
  • Loss of Job
  • Reduced Income
  • Failed Business
  • Job Relocation
  • Death of Spouse or C0-Borrower
  • Divorce
  • Legal separation
  • Incarceration of you or your co-borrower
  • Military Duty
  • Damage to Property (natural disaster or man made damage)
  • Additional Dependents

Keep in mind there are other. These are simply the normally and generally accepted reasons, however anything that is effecting your finances that can't be helped is generally a good reason.

How to Word a Letter of Hardship

Again, you want to keep on point and give the facts. Explain how everything effects you(if a family member is sick explain the major ways it effects you) financially). Overall you want to make sure you sound like you need help and that you are worth helping. If you say there is no way you will ever be able to make the mortgage payments now or after a modification the lender may try to help you but they will need your financial information and you will need to try. The lender will do what's best for the company. You can use your past and tell them that you have paid on time and maybe extra in the past and then tell them what would be required to continue to keep paying.

Be sure to be polite as well. This will show that you are serious and acting rationally and will likely make the letter easier to read. Although you are in the midst of the hardship an overly emotional letter wont help. Keep the letter short and thank them for their time and then you and your co-borrower should sign and if you didn't date the letter yet, date it.

Wrapping up the Letter

At the end, be sure to thank the lender for their time and consideration and attach any documentation that may be needed. For example: for medical problems you will need to put a copy of the medical bills and maybe pay stubs. For pay cut, send pay stubs and any other relevant financial information. You need to back up your claims and give proper documentation and just to be sure ask if they need any more information and to whom you should address it.

Continued: Sample Hardship Letter

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