A hardship letter is a written explanation of a borrower’s financial difficulties and the reasons they are unable to make their mortgage payments. The letter is typically included with a request for a loan modification, which is a change to the terms of the loan that makes the payments more affordable for the borrower.
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Here is an example of a hardship letter for a mortgage modification:

Sample 1 - Hardship Letter for Mortgage Modification
[Your Name]
[Your Address]
[City, State ZIP Code]
[Email Address]
[Phone Number]
[Date]
[Lender’s Name]
[Lender’s Address]
[City, State ZIP Code]
Dear [Lender’s Name],
I am writing to request a loan modification for my mortgage loan on [property address]. I have recently experienced a significant hardship that has made it difficult for me to make my mortgage payments on time.
The hardship I have experienced is [briefly describe your hardship, such as loss of job, medical bills, divorce, etc.]. As a result, my income has been greatly reduced, and I am unable to continue making my mortgage payments as they are currently structured.
I am currently working with [name of organization/agency if applicable] to address this hardship and find a solution to my financial situation. However, I am unable to bring my mortgage payments current without assistance.
I am requesting a loan modification to lower my monthly mortgage payment to an amount that I can afford. I understand that this may require a change to the terms of my loan, such as an extension of the loan term or a reduction in the interest rate.
I have attached all the necessary documents such as paystubs, bank statements, etc.. to support my request. I am willing to provide any additional information or documentation that may be required.
I am committed to making my mortgage payments on time and keeping my home. I would greatly appreciate your consideration of my request for a loan modification.
Thank you for your time and consideration.
Sincerely,
[Your Name]
Sample 2 - Hardship Letter for Mortgage Modification
[Your Name]
[Your Address]
[City, State ZIP Code]
[Email Address]
[Phone Number]
[Date]
[Lender’s Name]
[Lender’s Address]
[City, State ZIP Code]
Dear [Lender’s Name],
I am writing to request a loan modification for my mortgage loan on [property address]. I have recently experienced a significant hardship that has made it difficult for me to make my mortgage payments on time.
The hardship I have experienced is [briefly describe your hardship, such as loss of job, medical bills, divorce, etc.]. As a result, my income has been greatly reduced, and I am unable to continue making my mortgage payments as they are currently structured.
I am currently working with [name of organization/agency if applicable] to address this hardship and find a solution to my financial situation. However, I am unable to bring my mortgage payments current without assistance.
I am requesting a loan modification to lower my monthly mortgage payment to an amount that I can afford. I understand that this may require a change to the terms of my loan, such as an extension of the loan term or a reduction in the interest rate.
I am willing to provide any additional information or documentation that may be required.
I am committed to making my mortgage payments on time and keeping my home. I would greatly appreciate your consideration of my request for a loan modification.
Thank you for your time and consideration.
Sincerely,
[Your Name]
Frequently Asked Questions (FAQs)
1. What is a hardship letter for a mortgage modification?
Answer: A hardship letter is a written explanation of a borrower’s financial difficulties and the reasons they are unable to make their mortgage payments.
The letter is typically included with a request for a loan modification, which is a change to the terms of the loan that makes the payments more affordable for the borrower.
2. What should be included in a hardship letter for a mortgage modification?
Answer: A hardship letter should include a brief description of the financial hardship the borrower has experienced, such as loss of job, medical bills, or divorce.
It should also explain how the hardship has affected the borrower’s ability to make their mortgage payments, and why they are unable to continue making payments as they are currently structured.
Additionally, the letter should request a loan modification and specify the terms that would make the payments more affordable for the borrower, such as a reduction in the interest rate or an extension of the loan term.
3. How do I write a hardship letter for a mortgage modification?
Answer: When writing a hardship letter for a mortgage modification, it is important to be honest and specific about your financial situation. Start by introducing yourself and providing your contact information, including your name, address, phone number, and email address.
Then, explain the hardship you have experienced and how it has affected your ability to make your mortgage payments. Request a loan modification and specify the terms that would make the payments more affordable for you, such as a reduction in the interest rate or an extension of the loan term.
Finally, include any supporting documents, such as pay stubs, bank statements, and any correspondence with a housing counselor or other professional.
4. What are some common reasons for needing a mortgage modification?
Answer: Common reasons for needing a mortgage modification include loss of income, increased living expenses, and unexpected medical bills. Other reasons include a change in household size, such as the addition of a child or a divorce, and a permanent disability or illness that affects the borrower’s ability to work.
5. Are there specific qualifications to be eligible for a mortgage modification?
Answer: Lenders typically have their own specific requirements for loan modifications, but generally, borrowers must demonstrate a significant financial hardship and show that they are unable to make their current mortgage payments.
In addition, borrowers must also show that a loan modification would make the payments more affordable for them and that they have the ability to make the modified payments.