Sample "Hardship Letter for Loan Modifications"

A Hardship Letter for Loan Modifications is a document that can be used when an individual would like to change their loan conditions because their income has dropped. The purpose of the document is to inform the creditor about the individual's hardships and request that they modify the loan stipulations.

Alternate Name:

  • Loan Modification Hardship Letter.

This letter is supposed to be prepared by an individual who has borrowed money soon after their income conditions have changed since their creditor (bank or another financial institute) might take some time to make a decision. A Sample Hardship Letter for Loan Modifications is available for download below.

In this letter, the individual should thoroughly explain what has affected their income to drop. However, submitting a Loan Modification Hardship Letter does not guarantee that the individual's loan stipulations will change. To convince the creditor, the individual must provide evidence and attach to the letter any documents that can confirm their words. These documents can include police reports, medical paperwork, and other records.


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Sample Hardship Letter
for Loan Modifications
From: Rodney Smith
1234 Melrose Circle
Miami, Florida 33154
[Date]
To: ABC Bank
9804 Orange Blvd.
Orlando, Florida 32809
Re: Mortgage Loan Modification
To Whom It May Concern,
I am writing this letter to request a mortgage modification that will allow me to
continue to make my mortgage payments.
When I was approved for my loan, my gross income was $3,000 per month, and my
mortgage payment was $1,000 per month. After becoming handicapped and losing my
main job, my monthly income dropped to $2,100, and my ARM payment adjusted
upward to $1,200 per month. My mortgage payment is now over 55% of my monthly
income.
I have used my savings to keep up with my payments, but those resources will soon be
exhausted. My condition makes it unlikely that I'll be able to take on a second job (all
related medical paperwork will be attached to this letter). I have done some
calculations and have determined that I could continue to honor my obligation to you
if you were to grant me a payment reduction to $930 per month.
I can be reached at
[Phone
Number] or by email at
[Email
Address], and will gladly
supply any additional documentation you may require.
Sincerely,
Rodney Smith
[Signature]
©
TEMPLATEROLLER.COM
Sample Hardship Letter
for Loan Modifications
From: Rodney Smith
1234 Melrose Circle
Miami, Florida 33154
[Date]
To: ABC Bank
9804 Orange Blvd.
Orlando, Florida 32809
Re: Mortgage Loan Modification
To Whom It May Concern,
I am writing this letter to request a mortgage modification that will allow me to
continue to make my mortgage payments.
When I was approved for my loan, my gross income was $3,000 per month, and my
mortgage payment was $1,000 per month. After becoming handicapped and losing my
main job, my monthly income dropped to $2,100, and my ARM payment adjusted
upward to $1,200 per month. My mortgage payment is now over 55% of my monthly
income.
I have used my savings to keep up with my payments, but those resources will soon be
exhausted. My condition makes it unlikely that I'll be able to take on a second job (all
related medical paperwork will be attached to this letter). I have done some
calculations and have determined that I could continue to honor my obligation to you
if you were to grant me a payment reduction to $930 per month.
I can be reached at
[Phone
Number] or by email at
[Email
Address], and will gladly
supply any additional documentation you may require.
Sincerely,
Rodney Smith
[Signature]
©
TEMPLATEROLLER.COM