"Loan Modification Hardship Letter Template"

What Is a Loan Modification Hardship Letter?

A Loan Modification Hardship Letter is a formal statement sent by the borrower to the lender with the intention to explain the financial difficulties the borrower has encountered and to request the modification of the loan to make it more affordable or create a more flexible payment schedule.

The lender must receive and review official documentation that proves your lack of means and challenging life circumstances before there are any amendments to your loan. If you are able to illustrate your point using bank statements, wage statements, and other documents that verify your inability to keep up with payments in accordance with your original agreement, the lender may grant you a loan modification. Do not ignore your problem and hope that the issue will solve itself - contact the lender as soon as you can to explain which hardship forced you to delay payments.

You can find a Loan Modification Hardship Letter template through the link below.

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How to Write a Hardship Letter for a Loan Modification?

Here is how you compose an effective Hardship Letter for Loan Modification:

  1. Greet the lender and introduce yourself. Add the details of your loan so that the recipient can quickly find it in their database and start working on your issue.
  2. State the purpose of your letter - you have financial difficulties and have no choice but to ask them for the loan modification. Explain the circumstances that led to your financial troubles - maybe you have lost your job, received overwhelming medical bills, went through a divorce, or suffered from a natural disaster. You must not only indicate the reason for your poor financial standing, but also prove it by referring to documents, statements, affidavits, and medical records that confirm your words - attach the copies of the supplemental documentation to the letter.
  3. Be precise with what you are asking - you can request the modification of the loan or a short sale if you are behind on your mortgage. If you strongly believe you will be able to return to a regular payment schedule after a certain period of time, you may promise the lender to get back to the original arrangement in six months or a year.
  4. When writing a Hardship Letter for Loan Modification, you need to remember this document will decide your financial future and might be used later as evidence against you in case your loan becomes a matter for the court. It is important to be not only concise and honest but also keep your tone professional and polite - do not blame the letter reader for troubles or constant calls you may have received so far, simply present the facts and leave the personal feelings to yourself.
  5. Once again reiterate that you are worthy of the loan modification, thank the recipient of the letter for their time, add your contact details, and sign the document. It is better to send it via traditional mail to obtain a receipt.

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Loan Modification Hardship Letter
From: ​ _ __________________________
To:​ _ _____________________________
Borrower’s Name
Recipient’s Name
_________________________________
_________________________________
_________________________________
_________________________________
Borrower’s Address
Recipient’s Address
_________________________________
_________________________________
City, State, ZIP Code
City, State, ZIP Code
_________________________________
_________________________________
Borrower’s Phone Number
Recipient’s Phone Number
_________________________________
D ate
To Whom It May Concern,
I am writing this letter to explain my unfortunate set of circumstances that have
caused us to become delinquent on our mortgage. We have done everything in our
power to make ends meet but unfortunately, we have fallen short and would like you
to consider working with us to modify our loan. Our number one goal is to keep our
home and we would really appreciate the opportunity to do that.
The main reason that caused us to be late is [​
R eason​
] . Soon after being late and our
income not being nearly enough, we had fallen further and further behind.
Now, it’s to the point where we cannot afford to pay what is owed to [​
L ender​
] . It is
our full intention to pay what we owe. But at this time we have exhausted all of our
income and resources so we are turning to you for help.
The approximate date of hardship is [​
D ate​
] and we believe that our situation is
[​
T emporary/Permanent​
] .
Our situation has got better because [​
R eason​
] and we feel that a loan modification
would benefit us both. We would appreciate it if you can work with us to lower or
delinquent the amount owed and or payment so we can keep our home and also afford
to make amends with your firm.
©​ ​ ​ ​
T EMPLATEROLLER.COM​
Loan Modification Hardship Letter
From: ​ _ __________________________
To:​ _ _____________________________
Borrower’s Name
Recipient’s Name
_________________________________
_________________________________
_________________________________
_________________________________
Borrower’s Address
Recipient’s Address
_________________________________
_________________________________
City, State, ZIP Code
City, State, ZIP Code
_________________________________
_________________________________
Borrower’s Phone Number
Recipient’s Phone Number
_________________________________
D ate
To Whom It May Concern,
I am writing this letter to explain my unfortunate set of circumstances that have
caused us to become delinquent on our mortgage. We have done everything in our
power to make ends meet but unfortunately, we have fallen short and would like you
to consider working with us to modify our loan. Our number one goal is to keep our
home and we would really appreciate the opportunity to do that.
The main reason that caused us to be late is [​
R eason​
] . Soon after being late and our
income not being nearly enough, we had fallen further and further behind.
Now, it’s to the point where we cannot afford to pay what is owed to [​
L ender​
] . It is
our full intention to pay what we owe. But at this time we have exhausted all of our
income and resources so we are turning to you for help.
The approximate date of hardship is [​
D ate​
] and we believe that our situation is
[​
T emporary/Permanent​
] .
Our situation has got better because [​
R eason​
] and we feel that a loan modification
would benefit us both. We would appreciate it if you can work with us to lower or
delinquent the amount owed and or payment so we can keep our home and also afford
to make amends with your firm.
©​ ​ ​ ​
T EMPLATEROLLER.COM​
We truly hope that you will consider working with us and we are anxious to get this
settled so we all can move on.
Sincerely and Respectfully,
_______________________________
_______________________________
Borrower’s Name
Co-Borrower’s Name
_______________________________
______________________________
Borrower’s Signature
Co-Borrower’s Signature
_______________________________
_______________________________
Date
Date
©​ ​ ​ ​
T EMPLATEROLLER.COM​
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