How to Write a Hardship Letter for a Mortgage Loan Modification

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A hardship letter is designed so that you have a chance to explain to your mortgage company the financial situation you're in that prevents you from paying your mortgage. The hardship letter should provide a concise explanation for your situation as well as your willingness to work out a plan with the lender.

Create an outline of the points you'd like to discuss. You want to create a letter that explains your past financial hardships honestly and maintain a positive outlook for the future.

Format the letter to include the date, your name and contact information at the top of the letter. Also include your loan account number. Address it to your contact person at the mortgage company.

Open by explaning that letter is to support your need for a loan modification, that you will explain why you're delinquent in your payments and that you wish to keep your home.

Give a brief and concise account of your past financial issues leading up to the delinquent payments. Stick to the facts. Lenders are willing to take into consideration hardships such as a job layoff, divorce and high medical bills. Explain what your current employment status is and your annual income. Describe what steps you are taking to rectify the situation and how a modification to your loan can help you move forward.

Your closing paragraph should be a positive statement of your intent to move forward, including your commitment to making the payments for your modified loan. Be sure to add a contact phone number, should they have any questions or wish to discuss your letter further.

Sign your letter and keep a signed copy for your records. Attach the hardship letter to the rest of the application and forward it to the lender per their instructions.

Tips & Warnings

  • Be sure to read ALL loan documents before signing!
  • Ask questions of your lender or a trusted 3rd party prior to making a new commitment.

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