Here is a specific example of a hardship letter you could use for a loan modification if you fall behind in your payments. For a little more detail on putting a hardship letter together see: Tips on How to Write a Hardship Letter for a Loan Modification or Short Sale.

A hardship letter is a letter written to your bank or mortgage company telling them why you can no longer afford to make the payments on your home. This letter describes your hardships and specifically what has happened that caused you to fall behind.

Based on the current credit environment, hardship letters are being used as a tool to help homeowners avoid foreclosure on their homes. The result can be a modification of the loan or the acceptance of a real-estate short sale by the bank.

Sample Hardship Letter for Loan Modification:

(Date)

To Whom It May Concern:

Our family purchased our home in (Date).

Since that time, a number of unfortunate circumstances have impacted us. These circumstances combined with the rising costs of food and the economic slow down have caused us to be delinquent on our mortgage payments. We love our home and want to stay in it and would like you to consider working with us to modify our loan.

In the last few months our financial situation has gotten difficult. Specifically, (This is where you need to explain the specifics of your situation. Example: Our adjustable interest rate went up and our payments increased from $x to $y, lost one of our jobs, medical emergency….). As a result of these unfortunate circumstances we can no longer afford our mortgage payments.

We feel that if we could get our loan modified, we would be in a better situation and could make our payments. We would appreciate if you can work with us to lower our payment so we can keep our home.

We have enclosed copies of our financial statements.

(You would attach copies of proof of income {paycheck stubs…}, Proof of hardship {late notices you received recently}, Bank Statements for last 2 months, past 2 years income tax return)

We appreciate all of your help as our family goes through these hardships.

Sincerely,

Home Owner Name(s) ___________________

Signature_____________________

Loan # ______________________

Address______________________

Phone________________________

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