Examples of hardship letter for mortgage loan modification

Are you late with your mortgage? If you think you will not meet your current mortgage requirements but are willing and able to pay, you thought about applying for a loan modification from your lender. If so, you should write and send a letter of relief providing information on the circumstances that led to your current financial situation and a request to consider different loan terms. Here are three sample charts, each based on different financial hardship situations, that you can download and edit to create a hardship chart to suit your needs.

Here are three letters of motivation for difficulties that can be used as starting points for your lender’s communication documents. Select the reason closest to your situation, then customize it according to your specific situation.

Application for financial difficulty due to unemployment

If you’re struggling to keep up with mortgage payments because you’ve lost your job, applying for a mortgage modification may be in your best interest. This sample letter provides a change request based on the loss of income from unemployment.

Difficult divorce application

If your divorce has made it difficult for you to keep up with your mortgage payments, this letter is the right template to use.

Request for discomfort for critical illness

A serious illness, whether on your own or in your family, can cause financial difficulties. If your mortgage has expired due to treatment for a serious illness, the following letter can provide a good starting point for creating your hardship application.

The government’s Making Home Affordable.gov website provides homeowners with detailed information on the Obama administration’s programs to assist homeowners with loan modifications and refinancing. Use free self-assessment tools and calculators. Connect with free consulting resources or locate homeowner events in your community.

There is a wealth of information available to help homeowners at risk of foreclosure. The Making Home Affordable program was launched specifically to help people facing foreclosure and to revitalize the real estate industry. It is there for your benefit.

Other possible reasons for awkward requests

There are many reasons, in addition to unemployment, divorce, and serious illness, that can lead a homeowner to apply for a loan modification. However, you can use one of the sample letters provided in this article as a guide for writing a letter to your lender. Simply download the letter that best suits your situation and edit the text to accurately describe its circumstances.

Some of the many reasons that can be used to request a loan modification include

  • Repayment of the variable rate loan (payments are now too high) Change of mortgage loan
  • Property damage (due to natural disasters or unnatural means)
  • Death of spouse or co-borrower
  • Failed business
  • Imprisonment
  • Job transfer
  • Marital separation
  • Medical expenses
  • Military service
  • Reduction of income

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Tips for Applying for a Loan Modification

The key to successfully applying for a loan modification begins by clearly explaining why you are late in paying your mortgage. It is also essential that you express a sincere desire to correct the situation and explicitly call for change to be considered. Make it clear that you want to move forward and that you are willing to do everything in your power to “fix things.” While there is no guarantee that your application will be successful, lenders are often willing to work with borrowers who are proactive in seeking change rather than allowing outstanding loans to lag and move forward. towards foreclosure. You may find (like many) that the banker is willing to work with you to maintain your home.

Examples of loan modification hardship letter components

It is important to include your name, address, social security number, and loan number so that your lender can identify your letter and correctly apply it to the loan modification file. Here’s how to save money and make up for lost payments, such as job loss, reduced wages or hours, medical or family problems, divorce, and the death of your family. , health problems, etc. This is your chance to “humanize” your loan modification problem letter and tell your lender your friendly story. Finally, tell the lender that you have resolved the problem and that you can now make your loan modification payments. If you want a lower payment, be sure to mention that in your letter as well.

Example Loan Modification Hardship Letter Sample

Borrower(s) Name and Address

Social Security Number
RE: Loan Number

Dear Sir or Madam:

Due to unfortunate circumstances, such as [insert specific information, e.g., “a combination of losing my job at All-Star Marketing and a family medical problem,” etc.] according to the terms. of my mortgage contract. Because I’m in the business [Sales / Real Estate / Automotive, IT / Manufacturing, etc.], my business has been especially susceptible to an economic downturn, including the current downturn.

However, I recently got a new job at [Name of Employer], or I have recently been promoted to a full-time position, or I have recently rented a bedroom in our home, etc., which is much more stable and consistent. Compared to my previous job and income. Now that I’m back at work, I’d love to pay my mortgage payments. Please consider my loan modification request as the financial issues that caused me to pay late have been resolved.

Thank you,


Difficulty letter signboard

The sample loan modification hardship letter above is just an example and the suggested starting point for your loan modification hardship letter, it’s best to speak from the heart and try to explain what happened. Keep in mind that it is best to take responsibility and not blame others, such as your mortgage broker, realtor, or blame the broader housing market as the reason you are left behind. The lender wants you to take responsibility and tell them that you have solved the problem. In many areas, like Orange County, California, where a high percentage of people worked for an industry (mortgages and real estate), it is reasonable to say that you were part of the global economic crisis in your industry.

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