Example Of A Hardship Letter

Example of a Hardship Letter

Seeing an example of a hardship letter may help point some distressed homeowners in the right direction while trying to write a hardship letter. Writing a compelling and concise hardship letter is often the key to achieving approval on a loan modification request. Mortgage lenders may have to sort through thousands of hardship letters so it can be critical to stay direct and to the point. Homeowners trying to get a loan modification may wish to learn as much as possible about how to write a strong hardship letter.

Examining an Example of a Hardship Letter

While hardship letters often vary significantly from homeowner to homeowner, it can be very beneficial to examine this example of a hardship letter to review the important elements highlighted in green:

10/16/2013 [Date]

John Doe [Name of Loss Mitigation Specialist]

Big House Mortgage [Name of Mortgage Lender]

123 Lake Drive [Address of Mortgage Lender]

Jacksonvillle, FL 32233

RE: John Smith [Name of Borrower]111 Sample Road [Address of Borrower]

Jacksonville, FL 32233

Loan #: 1234567 [Loan Number]

To Whom it May Concern,

[Identify the intent of your hardship letter]

I am writing this letter to request a loan modification and identify the cause of my financial hardship that contributed to a default on my mortgage. I am committed to keeping the home and will do anything in my power to bring the mortgage loan current.

[Identify the cause and date of the financial hardship]

The company I worked for recently downsized and let go of many employees. Unfortunately, my employment with the company was terminated on 08/13/2013 and I was forced to file for unemployment. I am currently actively seeking employment, but it has become very difficult trying to afford my mortgage with three kids on only an unemployment check.

[Explain how this caused a default on mortgage payments]

With such a significant reduction in my monthly income, I inevitably fell behind on my mortgage. I worked with my previous company for over 10 years and the compensation from unemployment constitutes a 75 percent reduction in my normal pay. I missed two mortgage payments before contacting you and expect to miss a third mortgage payment in the near future. I am investing every effort into rectifying this issue as soon as possible.

[Explain what steps are being taken to resolve the mortgage delinquency]

During the last couple of months, I sent out my resume to dozens of companies and I have two interviews lined up in the coming weeks. Should my interviews not turn out successfully, I am prepared to seek part-time employment until full-time employment can be secured.

[Identify any other money available that may be contributed to the mortgage]

I do have a couple of assets that may be liquidated in cases of emergency. I have a boat worth approximately $2,000 and investments through my 401k totaling approximately $5,000. If the liquidation and contribution of these funds increases the likelihood of getting approved for a loan modification, I am prepared to do so.

[Attach evidence to support the claims in the hardship letter]

I enclosed with this letter supporting documentation including:

  • Banking statements
  • A breakdown of my monthly budget
  • Letter of termination from my previous employment
  • Unemployment pay stub and former pay stub
  • The title of my boat with an appraised amount
  • 401k statements

I am confident a loan modification to reduce my monthly payments from $1300 per month to $800 per month can help me afford my mortgage and bring my loan current. I hope to minimize all expenses possible in order to keep my valued home. I appreciate your fair consideration.


John Smith