How do I write a hardship letter for a loan modification?

Posted by Katherine R. Kyle | May 01, 2022 | 0 Comments

How do I write a hardship letter for a loan modification?

A hardship letter is a personal letter that you write to your lender explaining why you fell behind on your mortgage payments and what has changed that will allow you to make payments if you receive a loan modification.

There should be three basic components of your hardship letter.  With each component, be brief and be honest.  Lenders do not have time to read more than one-page letters from every applicant, so get to the point quickly and concisely. 


Why did you fall behind on your mortgage?

People fall behind on their mortgage payments for a variety of reasons.  One of our clients had to leave her residence to take care of an elderly parent and during that time, her home was hit by a hurricane and suffered property damage.  Another one of our clients lost her husband and therefore, lost a substantial amount of income that prevented her from being able to afford to pay her mortgage.  Some clients lost their jobs and have been unable to obtain new employment.  Without income, they are unable to pay their mortgages.  If the situation that caused you to fall behind on your mortgage payments has improved, you need to include that in your letter.

If any of the situations below made it difficult to pay your monthly mortgage payments, you will want to include information about that situation.  This is not an exhaustive list.  Please be sure to include any situation that caused you to fall behind on your monthly mortgage obligation. 

    • Illness
    • Medical Bills
    • Divorce
    • Death of spouse
    • Job loss of you, a family member living in the household, or a roommate
    • Reduced Income
    • Loss of transportation
    • Property damage
    • Accident that affected your ability to earn an income

Whatever your personal situation is that prevented you from making your mortgage payments, just explain the situation.  Again, be brief.


What has changed that will allow you to make your payment if you receive a loan modification?

What has changed that will allow you to make payments now?  Be honest.  Be brief.  For example, if you lost your job but now have one, share that.  Or if you had to stop working to take care of a sick family member but have returned home, share that.  Sometimes, clients have unexpected expenses that cause them to get behind on their mortgage.  For example, their car broke down, or they had medical bills they paid instead of their mortgage.  Since these issues were resolved, they now have more cash flow to be able to make mortgage payments if they were given a loan modification.


Make a written request for a loan modification

The third and final component is a simple request for the bank to give you a loan modification.  This is one sentence requesting the bank to provide you with a loan modification, and stating you would be able to make the payment.

That is it.  Remember, to keep it simple and include the three components.  Many clients handwrite their hardship letter.  This is perfectly fine.  However, please make sure your writing is legible and it can be read by the lender.  You can also type your letter out on a computer.  If you decide to do this, you will want to print it out and sign with a pen before sending it to your attorney or lender. 

Below is a brief sample of a hardship letter with the three components.  


To Whom It May Concern

I fell behind on my mortgage after being laid off in 2020 after being employed for 10 years for the same company.

I have been seeking employment since 2020 and was offered and accepted a position in April 2022.  Therefore, I am now employed, working full-time.

Please process a loan modification for me, so I can stay in my home.  I will be able to make payments now.

Your signature, date you signed

We hope you found this blog helpful.  If you are in foreclosure, fighting to keep your home, we are here to help.  If you want to find out more information about a loan modification or find out if you may qualify, contact Kyle & Kyle Law at 24/7 at 877-595-3529 and set up a free consultation with a foreclosure defense attorney. 

About the Author

Katherine R. Kyle

Katherine grew up in the beautiful mountains of Western North Carolina in the small town of Sylva.  At the age of nine her parents were divorced, and it was then that she aspired to pursue a career as an attorney.  After high school, Katherine attended Western Carolina University in Cullowhee, ...


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