Rules for Writing a Modification Hardship Letter
How to Effectively Request a Mortgage Adjustment from Your Lender
Mar 12, 2009
A home loan modification hardship letter is just what it sounds like: a written request to your mortgage lender for loan adjustment. Your letter should explain your "hardship," what is causing it, and why a loan modification is necessary for you.
Rule #1: Keep Your Letter Short
Be brief and concise when explaining your financial situation. Do not use this letter to vent or to detail every financial setback in your life. Especially during the mortgage meltdown, lenders are swamped with homeowners petitioning them for loan modifications. Be respectful of the overworked and underpaid loss mitigation specialist's time and keep your letter to one or two pages at most.
Rule #2: Adopt a Professional Tone
Even though you're writing a hardship letter, you don't want to come across as whiny or melodramatic. Be matter-of-fact, use facts and figures to back up what you are saying, and frankly state your serious financial situation. Offer a workable solution for loan modification, and explain how it will help you stay current on your loan. When you're finished drafting your letter you should double-check (and then triple-check) for any spelling or grammar mistakes.
Rule #3: Demonstrate Responsibility
The primary purpose of a hardship letter is for the lender to determine whether or not you are a good candidate for (i.e: whether you will successfully make payments on) a modified mortgage loan. You need to let your lender know that keeping your home is your first priority, and that you are 100% committed to making payments if you could obtain a loan modification. Your letter needs to communicate that you are a responsible homeowner who just needs a second chance to show how dedicated you are to staying current on your monthly mortgage again.
Sources of Help for Writing a Hardship Letter
Because writing a hardship letter is such an important process, you shouldn't have to do it alone. Searching the Internet for free hardship letter templates can be helpful. Professional financial counselors can also give you advice on drafting a good hardship letter; referrals from your local HUD office can direct you to free non-profit financial counselors in your area.
Don't underestimate the importance of writing a hardship letter to your mortgage company. Be brief, professional, and use the opportunity to tell your lender how modification will help you. Seek help in writing your letter if necessary, but make sure to put plenty of thought into your final draft before dropping it in the mail.
Readers might also enjoy "Obama's New Loan Modification Plan" and "5 Loan Modification Myths."
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