A loan modification could mean the difference between a foreclosure or continued home ownership. It’s important to construct a hardship letter that provides all the information needed for a lending professional to quickly and efficiently consider your loan for adjustment. Below is a sample hardship letter:
(Explain why you’re writing the letter. Be precise.)
This letter is a request for a loan modification on my mortgage loan that is currently six months past due. On December 15th, 2008, the company for which I worked laid off all its employees and closed. I obtained new employment February, 2009, but at a pay rate 30% lower than my previous salary. I have not yet been able to obtain a higher paying position but continue to look. The net monetary loss to our household due to the job change is $900 per month. Because of this, we have been unable to make the full mortgage payment.
(Explain the exact modification requested, your ability to pay the requested amount, and your plan for bringing any delinquent payments current.)
Our mortgage loan currently has an adjustable rate of 9%. If the rate were lowered to 6% and converted to a fixed rate, we would be able to make the full amount of the monthly payment going forward, as well as an additional $175 per month toward the delinquent amounts due. If the modification is approved, and depending on the modification date, we estimate that our mortgage would be completely current in six to nine months after the modified mortgage payments begin.
(Tell them why it’s important that you retain your home and remind them of your previous credit worthiness)
Our family has lived in this home for twelve years, and we are very motivated to find a way to remain here. In the twelve years your company has held our loan, there has not been a single late payment until now. I believe we can come to an agreement that is mutually beneficial, and hope you will consider my request.
Thank you for your time.