How to Write a Hardship Letter for Loan Modification

Last updated on January 12, 2023 / By 

A hardship letter for loan modification is a written statement explaining why you are unable to make your mortgage payments and requesting that your lender modify the terms of your loan to make it more affordable. Here are some tips for writing a hardship letter:


  1. Keep it brief and to the point. A hardship letter should be no more than one or two pages long.

  2. Clearly state the purpose of the letter. Explain that you are writing to request a loan modification due to financial hardship.

  3. Describe your financial situation. Explain in detail the circumstances that have caused you to experience financial hardship, such as a loss of income, unexpected medical expenses, or a natural disaster.

  4. Provide documentation. Include copies of any relevant documents, such as pay stubs, tax returns, or medical bills, to support your claim of financial hardship.

  5. Make a specific request. Explain what type of loan modification you are seeking and why it will help you afford your mortgage payments.

  6. Keep it professional. Use a business letter format and avoid using emotional language.

  7. Proofread and edit. Make sure your letter is free of errors and is easy to understand.

It’s important to remember that a hardship letter is only one part of the loan modification process. You will also need to provide other documentation, such as proof of income and a budget, and you may need to work with your lender to come up with a mutually acceptable repayment plan.

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