Writing A Hardship Letter Auto Loan Modification

It is important that you write a request for auto loan modification properly. It has to be short and to the point, containing only the right information. If you want your loan to be modified as a result of hardship, you must make this very clear.

These types of letters are very formal, and they are a way of asking for help from creditors. You hope that, by understanding your situation, they will be willing to make a short term change to your terms and conditions that are easier for you to comply with.

Basic Rules for Writing a Hardship Letter Auto Loan Modification

You must clearly explain your hardship and provide sufficient evidence for it as well. Remember that the creditor is interested in facts. Hence, avoid becoming emotional about your situation. Indications of hardship could be things like:

  1. An unexpected reduction in income
  2. A death in the family
  3. Medical bills and/or disability/illness
  4. Losing your job

You should also state what efforts you have made to keep up with your payments. For instance, you may have canceled memberships to the gym and Netflix, and you may have taken on a part time job.

You must make sure that the letter is addressed to the right person. Hence, contact your lender first and ask to whom it should be written to. It is also possible that the auto loan company has a standard form that you must fill in to accompany a hardship letter.

What to Do

Some tips for writing a hardship letter of this kind:

  1. Keep the letter on one page.
  2. State all facts succinctly, objectively, and clearly.
  3. State that you want to come to a resolution.
  4. Attach all documented evidence to prove your current situation.
  5. Thank your creditor for their time and consideration.

What Not to Do

Some of the things you should not do in auto loan modification hardship letter:

  1. Overdramatizing or exaggerating the hardship situation you are in.
  2. Making false claims.
  3. Promising things that you will not be able to deliver on.
  4. Placing the blame on the creditor rather than on yourself or the situation being beyond your control.
  5. Being threatening, such as stating you will file for bankruptcy if you don’t get help (although you can mention that you may be forced into bankruptcy).

The most important thing is that you take responsibility for your own actions. Hardship is mostly caused by external events beyond your control. However, this doesn’t mean that you should play the blame game. Rather, you should demonstrate that you have been proactive in changing the situation and that there is simply nothing else that you can do. State as well that you will be willing to make alternative payments, if that is possible. Finally, you must make it very clear what type of modification you are looking for. This could be a freezing of payment, no longer having to pay interest, a break in payments, lengthening your agreement, and so on.

Hardship Letter Auto Loan Modification Example

{Your Name}
{Your Address}
{Your Phone Number}


To Whom It May Concern:

I am writing to try to request a modification to my car loan, since I am unable to meet my current payments. Specifically, I would like to {lower the interest rate/remove delinquency fees/forgive delinquent payments}.

My auto loan has proven unmanageable and as of {date} it is especially problematic because {the car has lost value/the loan value is upside down/I’ve experienced sudden, unexpected financial difficulty}.

As of {date}, I {owed more for the loan than the car was worth/I was involved in an accident that wasn’t my fault/I lost my job, etc.}. I would like to avoid repossession, but I can think of no way out of this situation without a loan modification.

I am hoping that we can work out some sort of solution as quickly as possible. Please contact me immediately so that we can begin this process.


{Sender Name}

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