Writing a Hardship Letter

An important part of the loan modification process is the writing of the hardship letter – a hardship letter is used to explain to the lender or servicer why you can’t make your payments the way the loan is currently structured. If the lender would change the structure of the loan you could continue to make your payments.

It’s important to keep in mind that although you are going through something very emotional, the bank or lender is looking at this as a business decision – make sure you explain why it’s in their best interest to modify your loan. In most cases they really don’t care about your personal situation – they want to know how they can get their money. Cold but true.

Something to keep in mind when you’re writing your letter and explaining your hardship – these letters will typically be reviewed by overworked, backlogged, $12 an hour loss mitigation employees. So keep be sure to keep it short and to the point. I’d say no more than one to two pages – that should be more than enough to explain why it’s important for you to get you point across.

Now it’s time for you to write your letter – hopefully this page gave you some helpful ideas. To the right please click on any of the hardship topics for sample hardship letters. With any luck this will help you further. Please contact me if you have any ideas how I can make this more helpful.