Hardship Letter Sample Loan Modification Example

As a loan modification attorney, clients often ask me for a loan modification hardship letter sample or example. In order to be considered for a loan modification, all borrowers must write a loan modification “hardship letter.”  The purpose of a loan modification hardship letter is to explain the challenges which caused the borrower to fall behind on payments, or explain why the present payment it too high.

Loan Modification Hardship Letter Example Components

It is important to include your name, address, social security number, and loan number so your lender can identify your letter and apply it to your loan modification file properly.  Next, you want to explain what caused you to have less money and fall behind on payments including loss of job, cutback in wages or hours, a medical or family issue, divorce, death in the family, health issues, etc. This is your chance to “humanize” yourself in your loan modification hardship letter, and tell the lender your sympathetic story. Finally, tell the lender you have solved the problem and can now make payments on your loan modification. If you would like a lower payment, make sure to mention that in your letter as well.

Example Loan Modification Hardship Letter Sample

Borrower(s) Name and Address

Social Security Number

RE:  Loan Number

Dear Sir or Madame:

Due to unfortunate circumstances including [insert specific information, for example: “a combination of the loss of my job at All Star Marketing and a family medical issue” etc.], I was unable to make my mortgage payments according to the terms of my mortgage contract.  Since I am in the [Sales/Real Estate/Auto, Computer/Manufacturing etc.] Industry, my business has been particularly susceptible to economic downturns, including the present recession.

However, I have recently secured a new job at [Name of Employer], or I have recently been promoted to a full time position, or we have recently rented out a bedroom in our house, etc., which is much more stable and consistent than my previous employment and income.  Now that I am working again, I would very much like to begin making mortgage payments again. Please consider my request for a loan modification as the financial problems which caused me to fall behind on payments have been resolved.

Thank you,


Hardship Letter Sample Advice

The Loan Modification Hardship Letter Sample above is just an example and suggested starting point for your loan modification hardship letter, it is best to speak from the heart and genuinely try to explain what happened. Keep in mind, it is best to take responsibility and not blame others such as your mortgage broker, real estate agent, or blame the overall housing market as the reason you fell behind. The lender wants you to take responsibility and tell them you’ve solved the problem. In many areas, such as Orange County, California, where a high percentage of people were employed by one industry (mortgage and real estate), it is reasonable to simply say you were part of the overall economic downturn in your industry.

California Loan Modification Attorneys

McFarlin LLP handles all aspects of loan modification for California borrowers. Our attorneys are available to speak with prospective clients and give you honest, straightforward advice. We help clients in San Francisco, Fresno, Long Beach, Bakersfield, Stockton, Modesto, Huntington Beach, and throughout California .  With a matter as important as the loan modification on your home, it is a very good idea to consider hiring a qualified loan modification lawyer to represent you and protect your interests. Call us today at (888) 728-0044.