Example of a Hardship Letter to get Approval on Home Loan Modification
When you apply for a loan modification you will need to provide your financial institution with a financial hardship letter. This can be the most difficult of all you have to do if you are not sure what you should write or how to word it.
Below I have outline what a sample letter should look like so you can get a feel for how you should do your letter. I have included directions as to what to include where and how much detail you should go into to make your letter correct in format and so it stands out to your lender. This letter can make or break your approval and you want to do it the right way to up your chances of that approval.
You Loan Account Number:
[The Name of the Person Who is on the Loan]
[Your Current Address - Loan modifications are not allowed for properties that are not lived in.]
[Your phone number and email address]
To Whom It May Concern: (Or the mitigator assigned to your account)
[Explain your reason for the loan modification in the letter here.] The reason I am writing this letter is to let you know the reasons why I/we have fallen behind on the monthly payments. I am asking that you work with us/me on a loan modification. I/we have found ourselves on some hard times that are making everything a difficult. I/we would like to work out a plan with you and possibly work out a new set terms on the mortgage so we can stay in our house.
[Keep the explanation details short and to the point. - Don't drag it out. Try to limit it to about one paragraph.] I lost my job a couple months ago and have not be able to find anything that pays enough to pay all of my bills or other debts. I had some savings that I have been utilizing to try to stay above water but that is now depleted. I have however, found a position that pays well enough to get back on my feet and am to begin working in a couple of days. My spouse, who pays half of our monthly bills, has fallen sick with X and can no longer work because of the medical treatments. Fortunately the physicians expect a full recovery within 6 months. Although it is great that my spouse will get better, the medical treatment being used is costly and we can not afford to pay our other bills along with the medical treatment. [Explain your get back on your feet plan.] After doing the calculations, I have come to the conclusion that with my new job I will be able to pay monthly bills including the monthly mortgage payment of $X. As soon as my spouse recovers from her sickness we will be financially stable again however until that day arrives, we will be a little short onr money. If possible, we are asking [Ask for exactly the loan modification agreement you feel you can handle and they will approve of]
Thank you for you consideration and time. Thank you for looking over my circumstances and considering the approving a home loan modification that will help us get back on our feet and paying our bills.
Sincerely,
[Signature]
Above is just an example, make sure you are aware of this. If you copy this, you will not be approved. You need to enter your own true details and explain in your own words what is going on and how you plan to fix the situation. This is the format and way you should layout your letter. You should always give a bit more detail, but don’t drag it out and tell your whole life story, only tell what pertains to the situation.
