Hardship Letters: Important Information to Include

A hardship letter plays a pivotal role in the loan modification process, and there are a number of points which are essential to include. These will be outlined below. It is also important to remember that a loan modification company or attorney will be able to provide massive assistance when preparing a hardship letter that is informative, concise and effective.

  1. The first step is to include information about whom the letter is directed at. State the name and address of the lender, including the department and person who will be handling the application. It is imperative that all information is spelled correctly and the information is accurate; if the letter is sent to the wrong department or person this may result in the application being delayed.
  2. Introduce yourself, and go on to explain the reasons you have for writing the letter. This is where it would be useful to state the purpose of the letter is to seek a loan modification.
  3. Explain, as accurately and in detail as possible why you feel you require a loan modification. This is your chance to include as much information as possible as to why you are having issues paying your mortgage, or why it has become a hardship. Common factors which cause a mortgage to become unaffordable are:
    1. Death of a spouse/partner
    2. Being made redundant
  • Taking a pay decrease or cut
  1. Unexpected medical bills that have spiralled out of control
  2. Change of adjustable rate mortgage to lower interest rate
  1. Make clear to the lender how a modification will improve your situation and help you to resolve financial issues, like catching up on missed payments.
  2. Finally include the contact information for all parties involved in the modification application.