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2011-11-14 17:35:21

Sample Hardship Letter

A hardship letter is a vital part of the loan modification package that is submitted to your lender. Homeowners that are facing foreclosure due to their mortgage payment being unaffordable are subject to explaining what has lead to these unfortunate circumstances. Getting approved for a loan modification is a lot more than just not being able to afford your mortgage payment. Your lender will want to see why you cannot afford this loan and what has changed financially from the time you got the mortgage to now.

When you write your hardship letter you should be very serious, as this is where you are pleading to your lender for help. It is always good to give a chronological description of the hard times you have faced leading to you not being able to afford your mortgage payment. You should also make sure you put accurate dates to any events that happened and it is always good to back up these incidents with any documentation that you have.

How to Write a Hardship Letter:

·         Describe any emergency repairs (i.e. vehicle repairs, or repairs necessary on your house.)


·         Explain in your words why you fell behind or going to fall behind on your mortgage payments. 


·         The reasons should have to be circumstances that are beyond the homeowners control.(i.e. loss of income, illness, and marked increase on household expenses).


·         Explain how it will not be problem making future mortgage payments once you are current.


·         If you got behind due to particular circumstances, state the measures you have done to resolve your situation.


Sample Hardship Letter:





Your Mortgage Company

Street Address

City, State zip

Account #:­­                                                                             

Dear Loan Service Counselor:

In September of 2007, my mother had fallen ill.  She did not have medical insurance and her health unfortunately got worse.  I was helping her out with some of her bills, and got her leaking roof fixed for her. My mother’s health failed and she passed away, leaving me with the funeral arrangement responsibility.  I had fallen behind on my financial obligations, including my mortgage payments.  Also, in the midst of all these, First Deposit National Bank garnished my wages.  I was in court (last May 21, 2008), to prove that I was sending my payments to them but since my account was with their collection attorney, it was supposed to be sent to them directly.  First Deposit Bank cashed my payments but for some reason, it was not being credited appropriately.  This is all settled now, Mr. Willis of Commonwealth Collection Attorneys had talked to Mr. Schultz after the court hearing and he had stated that the arrangements in court on the remainder of the debt would be $75.00/month starting on June 23, 2008.  I contacted my mortgage company and they demanded that I either come up with the exact amount or the payment will not be accepted at all.  I tried to save up the money and I also have a co-worker that rents from me.  I tried to send some payments to my mortgage company and they sent all of it back.  They wrote me a letter stating that they are returning the funds since my loan is now the subject of foreclosure proceedings, and the amount was not the total amount due.   I have set aside the funds that were sent back. We do not want to lose our home.  We are aware that once our mortgage difficulties get resolved, we can responsibly afford to keep our home.  We hope to avail in one of the many loss mitigation programs that you offer. We are hoping for your kind consideration.



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