Mortgage Modification Center - Writing A Convincing Hardship Letter

A Hardship Letter is one of the most vital documents to be submitted to your lender for getting a loan modification approved. The letter is written to explain your financial situation, why you are falling behind on payments, how your financial situation has or will improved, and what type of modification you propose.

You have to convince the lender that a mortgage modification is the one and only alternative that you have to retain your home. The nature of the letter should be excusing and convincing with a positive tone and succinct in nature. Focus on the reasons for opting for a modification and if possible, in one page only-the lender will be more likely to read the whole letter.

This letter may be handwritten, which resembles a personal touch. Here is a sample "hardship letter" with the above mentioned features:-

Date: 10/10/10

Your Name: John Doe

Your address: 12345 Miles way

Your Bank's Name: your lender

Loan number: available from lender

To Whom It May Concern (the more personal, the better. If you know the name of the person you will be working with, include his/her name or the title of such person)

May I herewith submit this letter explaining in detail about the circumstances that have forced me to fall behind on my mortgage payments and to request you to consider sympathetically for a loan modification which entitles me reduction in payments, fixing of a lower rate of interest and reshape or forgive the delinquent payments stopping me from further delinquency.

While working for (employer) as a (job title) (include each co-signer/borrower in case of more borrowers), I have recently faced difficulties and my payments defaulted because (reason for default). Since then (give details as to how your hardship has seceded), my income is now (increased, improved, etc.) Notwithstanding my recent hardships as detailed above, I had full intention to clear the payments but unfortunately could not. I shall be highly indebted if you would consider the following:

Lower my monthly installments

Fix the interest rate

Assist me to get caught back up

Kindly accede to my request and help me for a quick remedy to resolve the present delinquencies. Your co-operation is highly solicited.

Sincerely yours,

(Your Signature)

(Your Name)

In short, a hardship letter for a loan modification should be just that-a written request to your lender for a loan adjustment and a short letter with a professional, respective tone that is convincing in nature. This is very important for any lender to consider the request.

All in all, drafting a letter with all its humbleness and explaining the urgency of the situation for a modification is an important part in sanctioning a mortgage loan modification. The hardship letter is the loan modifications center.

P.S. Some of the justifiable hardships are - loss of job or decrease in income, death or illness of homeowner, spouse or family member, divorce or separation, forced relocation by employer, increased domestic and other expenses.