Loan Modification Tools - Sample Hardship Letter

December 1, 2008

Loan modifications are getting big press these days, and there are many homeowners in the situation of trying to modify their loan.  I have put together a sample hardship letter to help those in this situation.   With the proper tools and a little information, you can be successful in modifying your loan.  You can also take a look at this group, they have a loan modification package that gives you the information you need to do this yourself.  Additionally, you can check back in here as I will continue to post information that can help.

Sample Hardship Letter

Loan Number:

Name:

Property Address:

Phone Number:

To Whom It May Concern:

We are writing this letter to address the reasons that caused us to fall behind on our mortgage and ask you to work with us on a loan modification.  We do not want to lose our home, but unfortunately circumstances outside of our control have put us in a position where we cannot make ends meet.

The reason we have become delinquent on our loan is (briefly outline the reason, keep it to a single paragraph if possible.  If you lost a job, had a drop in income or some other hardship, this is where you put it on the table. Talk about when the hardship occurred and if it is permanent or temporary).

We have resolved this situation by (reason here – lost my job, was out of work for 3 months, took a new job, etc.) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us so that we may remain in our home.  We are requesting (ask for your preferred solution, rate reduction, fixed rate for 30 years, principal reduction, delinquent balance added to the loan amount, short sale, deed in lieu of, etc.).

We look forward to working with you and appreciate your time and consideration.

Sincerely,

Borrower’s Signature

Date

Co-Borrower’s Signature

Date

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