ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Loan Modification Hardship Letter

Updated on May 5, 2011

Example Loan Modification Hardship Letter

I've been coming across so many homeowners trying to contact the loss mitigation department with their lender to negotiate a loan modification. One of the first things a lender asks for is a hardship letter showing why the homeowner has been late with mortgage payments.

A good loan modification hardship letter shows valid reasons for example, been laid off, hospitalized, unable to work, or mortgage loan adjusted, was deceived into a loan (loan fraud) etc.

When putting together your hardship letter, be sure to point out everything you can. It's OK to cry out so someone hears you.

Hardship Letter Example...

To Whom It May Concern:

I have had problems making my monthly payments due to financial difficulties created by my negative amortization loan and my high interest rate. I was sold this loan by a mortgage broker who assured me the quoted payment of $1,748.94 was my full principal and interest payment. Needless to say he was totally wrong and misled me. I was only paying a deferred interest payment which was going to increase my loan balance each month. I have been paying my interest only payment and been struggling due to the high rate of 7.375%

My wife and I are barely making ends meat and we have been dipping into our savings to cover our mortgage payment along with the taxes and insurance. My wife and I were told we could refinance out of this loan but that is obviously not possible since the home is worth less than we owe on our mortgage and the property values keep on dropping in our area.

In order to avoid a future possible foreclosure, I'm requesting a lower interest rate (30 year fixed rate with lower monthly payment) on my current mortgage to Countrywide.

As a long time customer, I'd prefer that the you remain my primary mortgage lender, but without a reduction in the interest rate, I simply can't afford higher monthly mortgage payments.

Our (me and my wife) total annual income amounts to $75,000.00. That income should certainly sufficient just to pay the decent principal and interest monthly payment. We have always paid our bills on time and have an excellent credit rating but cannot afford to pay the minimum payment and have the loan recast; we need help badly and want to retire in this home. We are scared of our current loan and we were completely misled and had no idea about the negative effects of paying the minimum payment. Please help us.

Thank you for your consideration,

Your Signature

Also, it is extremely important that you have a copy of your credit report to compare with your lender for errors. A lot of people say that there are mistakes with the lender's credit report. This is a problem because their decision on approving your loan modification is dependent on certain variables on your credit report. A lender looking at your debt to income ratio to make there final decision could mean the difference in approval and the final payment program they offer you in the process. So, if you have your own copy of your credit report you can disarm any false information they are hitting you with and forward a copy to your attorney if you wish.

Remember, be brief and to the point in your loan modification hardship letter but don't leave anything out. Good Luck! Be sure to get the a loan modification help and strategy Ebook to get you on the right track. Loss mitigation can be tricky if you don't have the right tools.

Did Your Payment Go Up?


    0 of 8192 characters used
    Post Comment
    • profile image

      Finance Guy 

      10 years ago

      This is a good example of a harship letter if yoyu are a homeowner whom has taken one of those option payment mortgages or the like from a bank such as wachovia (who is now serviced by Wells Fargo) or one of thoose god awful country wide "exotic mortgage products" (those loans are now serviced by BoA)

      If you have a mortgage with more traditional terms and have just found yourself in hardship due to the financial turmoils of the current economy (such as job loss, income reduction, scams, and the like) than just remember that you want to be direct, concise, professional, and keep it short. You want to avoid blaming your lender. Make sure you proof read it. Submit the thing by email fax if possible. Type it.

      I think some good places to read more about this kinda thing are, which also has a sister site at The government has some good online resources at MakingHomeAffordable.Gov and HAMPAdmin.Gov

      There is a good generic template at

      I am sure that there are many other great plaxces as well but those are the ones that come to mind. These resources give you a good mix of new and older. Government and private market.

      I think Rick did a good job highlighting some of the more imporant issues surrounding hardship and loan modification.

      Last point I think should be made is not to delay.

    • profile image

      Laura Morton 

      11 years ago

      Great advice. The hardship letter is the key to getting the loan modification done. One point I would add is to do the letter in the borrower's handwriting.

      Someone that takes the time to sit down and write a letter deserves a chance. With today's technology this is seldom done.

    • profile image


      11 years ago

      I enjoyed the article. Extremely useful hardship letter for loan modification. thanks!

    • profile image

      Jonathan Gillham 

      11 years ago

      Nanette, I would be happy to look into SaveMYHomeusa for you, is that a website or a loan modification company. Loan modification companies can be scams which I assume you know since you have asked the question. You are doing the right thing in checking online to investigate the company. I also recommend checking with your BBB.

    • profile image

      Nanette Murphy 

      11 years ago

      Can anyone give me any information on SaveMYHomeusa.

    • profile image

      Steve M. 

      12 years ago

      Interesting read. Thanks.

    • profile image

      Foreclosure Hope 

      12 years ago

      Nice article! This is a great article for Homeowners to read over and reference when creating a hardship letter. It is oh so true that many Homeowners overlook the importance of a solid hardship letter when trying to obtain a loan modification or other mortgage workout to stop foreclsure and make home affordable.

      Homeowners should always reference several sources for advice such as how to write a hardship letter. There is some great information on homeowner hardship and writing a hardship letter to obtain a loan modification @

    • profile image


      12 years ago

      Its a great help for homeowners to understand how precise a hardship letter can be . Good Job !!

      We do good when its about an afforradble monthly payment .

    • profile image

      John Marques 

      12 years ago

      We used this example. Thanks for your help. There are a lot of shysters in this industry so you have to be very careful.

      Here is a company that is reputable and professional. I couldn't be happier with them:

    • mycash4notes profile image


      12 years ago from Malvern, Arkansas

      This is a very good post and, as a matter of fact, it was very useful today for an aquaintance.

      Thank you for the post and cudos.

      Happy hubbing!

    • profile image

      Loan Modification 

      12 years ago

      Great post - this is a fantastic resource for loan modifications and learning how to stop foreclosure.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)