Have you fallen behind on your mortgage? If you don't think you'll be able to get caught up under the current terms of your mortgage, but you are willing and able to make payments, you may want to consider requesting a loan modification from your lender. If so, you'll need to write and send a hardship letter that provides information on the circumstances that led to your current financial situation paired with a request to consider different loan terms. Here are three sample letters, each one based on a different financial hardship situation, that you can download and edit to create a hardship letter customized to your needs.
Three Hardship Letter Templates
Here are three sample hardship letters that can be used as starting points for your own lender communication documents. Select the template that most closely matches your situation, then customize it to match your specific situation. Simply click the image of the letter you want to use to access a customizable PDF document that you can edit, save and print. If you need assistance downloading the templates, check out these helpful tips.
Hardship Request Due to Unemployment
If you are struggling to keep up with mortgage payments due to losing your job, applying for a mortgage modification may be in your best interest. This sample letter provides a modification request based on income loss resulting from unemployment.
Hardship Request Due to Divorce
If your divorce has made it difficult to keep up with your mortgage payments, this letter is the right template for you to use.
Hardship Request Due to Serious Illness
A serious illness - whether your own or that of a family member - can definitely cause financial hardship. If your mortgage is past due as the result of dealing with a serious illness, the letter below can provide a good starting point for you to create your own hardship request.
The government website Making Home Affordable.gov provides homeowners with detailed information about the Obama Administration programs to assist homeowners with loan modifications and refinancing. Make use of free self-assessment tools and calculators. Connect with free counseling resources or locate homeowner events in your community.
There is a wealth of information available to assist homeowners in danger of foreclosure. The Making Home Affordable program was started specifically to help people who are facing foreclosure and to revitalize the housing industry. It is there for your benefit.
Other Possible Reasons for Hardship Requests
There are many reasons other than unemployment, divorce and serious illness that may lead to a homeowner needing to request a loan modification. You can still use one of the sample letters provided in this article as a guide for writing a letter to your lender. Simply download the letter that most closely matches your situation and edit the text to accurately describe your circumstances.
A few of the many reasons that can be used to request a loan modification include:
- Adjustable rate mortgage reset (payments are now too high)
- Damage to property (either through natural disaster or unnatural means)
- Death of spouse or co-borrower
- Failed business
- Job relocation
- Marital separation
- Medical bills
- Military duty
- Reduced income
Loan Modification Request Tips
The key to successfully requesting a loan modification starts with clearly explaining the reason(s) that you fell behind on your mortgage payments. It's also essential that you express a sincere desire to correct the situation and explicitly request consideration for a modification. Make it clear that you want to go forward and that you are willing to do all in your power to 'make things right.' While there is no guarantee that your request will be granted, lenders are often willing to work with borrowers who are proactive in seeking modifications rather than allowing outstanding loans to fall further behind and move toward foreclosure. You may find (as do many) that the banker is willing to work with you to keep your home.