Mortgage Modification Hardship Letter

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A Hardship letter is something most Mortgage Companies or loan modification programs will require to even consider you for a modification. Your hardhsip letter is your one chance to explain your predicament and appeal for another chance.

Your hardship letter should not be used as a platform for you to complain about your situation, gripe, whine or moan about your loan terms. Regardless of how you feel, you have to remember that "you'll catch more flies with sugar than with salt". If you have already made insults or stuck your perverbial foot in your mouth, you may need to "eat some crow", so to speak, in order to get the results you need. Don't make your situation worse by entertaining your lender with non-productive, perverse or child-like bantor. Arguing is the worst thing you can do at this point. Remember, he who holds the gold makes the rules.

Your letter must be honest and represent the facts clearly. It must prove to your lender that your situation was caused through no fault of your own and the fact that you fell behind was temporary. You must also prove that you are now in a position to make your payments on time.

You must also have a legitimate excuse for falling behind… financial problems in itself would not be an adequate excuse. Loss of a job, death in the family or an illness would be an acceptable reason to fall behind on your Mortgage temporarily. Below is a good example of a letter that the Mortgage Company may be looking for:

To: MyBank Mortgage - Aaccount # XXX-XXXX

Re: Mortgage Loan Modification Request

I wish to be considered for a loan modification on my current loan that I have with you. Recent changes in my (health with explanation) have drastically disrupted our families budget. In fact, we are having a very difficult time making utility payments and buying food.

Hopefully, this loan modification hardship letter will demonstrate to you that I would, indeed, have the ability to pay my mortgage if the monthly payment amount were smaller. I am enclosing a recent check stub as proof of income. I am also enclosing a list of current obligations which includes all credit cards, average utility bills, food and other expenses necessary for family household maintenance.

I have ____ years left on my mortgage and I want very much to keep my home. I would be interested in a program where I was able to extend the term of my loan, making the monthly payments smaller, allowing for the decrease of my income due to my untimely hardship.

I am hopeful that you will be open to renegotiating the terms of my current home loan to avoid potential a foreclosure. I believe that it is in our collective interest to work out this loan modification.

Please contact me at your earliest convenience so that we can further discuss my request for a loan modification. I would be willing to provide examples of any paperwork to backup my disability claims - including doctors records as well as proof of my disability income. I can be reached any time of the day at the following phone number. (555) 555-5555.

I/We warrant that the above stated information provided above is true and correct.

Thanks you so much for your time, help and consideration.

Mr. Borrower                Date

Ms. Borrower               Date

Name: (Your Name)

Address: (Your Address)

Mortgage Co: (Mort. Co.) Loan No: (your Loan Number)

I/We, (Your Name), are requesting that you review my financial situation to see if I/We qualify for any workout option.

I/We are having problems making my monthly payments because of financial difficulties created by (circle what applies):

Unemployment
Reduced Income
Divorce
Separation
Medical Bills
Too Much Debt
Death of my Spouse
Death of a family member
Payment Increase
Business Failure
Job Relocation
Illness
Damage to Property
Military Service
Incarceration
Other (Please Specify)

This difficulty or situation happened on or about this date mm/dd/yyyy.

I/We believe that my/our situation is (circle one) Temporary / Permanent

This is a brief account of the situation is as follows: (explain your situation… tell them you feel you can now afford your payments)

I/We, (your name), state the information provided above to be true and correct to the best of my/our knowledge.


Borrower’s Signature
Date


Co-Borrower’s Signature
Date