How to Write a Hardship Letter for a Loan Modification (With Example)
If you are applying for a loan modification, one of the most important documents in your package is the hardship letter. This is a written statement explaining why you fell behind on your mortgage and why you believe you can sustain a modified payment going forward. Servicers read thousands of these. Here is how to write one that does its job.
What a Hardship Letter Does
The hardship letter serves two purposes. First, it establishes the reason for your default, which determines whether you qualify for certain loss mitigation programs. Second, it demonstrates that your hardship was real, that it has been resolved or managed, and that you are capable of making a reduced payment.
What to Include
A complete hardship letter should cover:
Who you are and what property you are writing about (your name, loan number, and property address)
What happened (the specific hardship: job loss, medical emergency, divorce, reduced income, death in family)
When it happened and how long it lasted
What has changed (why the hardship has resolved or stabilized)
What you are asking for (a loan modification to make your payment affordable)
A brief statement of your ability to pay going forward
What to Avoid
Do not exaggerate or misrepresent your situation. Servicers verify information. Do not write a one-line letter. Do not use emotional language without substance. Keep it factual and forward-looking.
Example Opening
"I am writing to request a loan modification on the above-referenced loan. In [Month, Year], I lost my position at [Employer] due to a company-wide reduction in force. During the following months, I exhausted my savings while searching for new employment. I am now employed at [New Employer] and earning [income], which I can document. I am requesting that [Servicer] review my account for a loan modification so I can remain in my home and sustain mortgage payments going forward."
Length and Format
One page is usually sufficient. Use a professional format with your name, address, loan number, and date at the top. Sign it.
Do You Need Help Preparing Your Application?
We assist homeowners in preparing complete loan modification packages, including hardship letters, financial worksheets, and document collection. A complete and correctly organized package moves faster. Call (646) 600-5995 or fill out our contact form.
Disclaimer: This article is for general educational purposes only and does not constitute legal advice. Foreclosure Professionals / ProForeclosure.com is a real estate services company, not a law firm. For legal representation, foreclosure defense, or bankruptcy guidance, consult a licensed New York attorney. Outcomes for any foreclosure or loan modification depend on your lender, investor guidelines, and court decisions. Results cannot be guaranteed. New York homeowners may also contact a HUD-approved housing counselor or call the NY Department of Financial Services at (800) 342-3736 for free assistance. We charge no upfront fees consistent with the FTC MARS Rule and NY GBL Section 265-b.
