Sample Hardship Letter

by Holly Smith on February 14, 2012

Below is a Sample Foreclosure Hardship Letter which can be tailored to suit your needs when requesting loan modification assistance from your bank or lender. Remember to keep the information as close to one page as possible. The loss mitigation unit receives several of these hardship letters and they do not have time to read a lengthy letter.

You don’t need to write a “foreclosure sob story”, these days everyone has one. Whether you stopped making house payments because of a job loss, decrease in salary, loss of a spouse, divorce, unexpected medical bill or change in health, etc. they all are good reasons but you don’t need to expound on the details for your delinquency.

Get straight to the point and make sure you “spell out” what it is you are looking for (loan modification, housing assistance program, reamoritization of your current mortgage loan, extension on terms, lower interest rate, etc.) in most cases they will make the recommendation depending on your delinquency and present situation. You should determine ahead of time how much you are looking to lower your house payment and say so in your letter (you must be realistic in your response). If you are now in a better position (maybe you lost your job but are now employed and able to continue payments) you should state that in the letter as well. Lenders can usually get you caught up within 6 mos. to a year and get you back on track without damaging your credit.

Whatever you do, DON’T make the bank/lender try and decipher what your current circumstances are and what would help get you back on track. By giving them the information they can come up with a solution to match your request rather than offering you a “canned response” and end up placing you on a program that doubles your payment in an effort to get you caught back up. You must be able to show proof of income for them to work with you…even if it is unemployment income (it still counts).



Bank Representative Name

Bank Name


Your Name(s)


xxx-xxx-xxxx Hm

xxx-xxx-xxxx Cell

Loan #

Thank you for your consideration with regard to our 1 st mortgage (Acct# xxxxxxxx) and/or Home Equity Line of Credit/2nd mortgage (Acct# xxxxxxx). After carefully revising our monthly budget, it has become necessary to request a loan modification or a consolidation of some type, which would reduce our total monthly payment by at least $ XXX per month.

The reason for our request is due to (fill in blank with cause for you falling behind in house payments)___________. We are presently XX months behind in payments. Prior to this time, we have had excellent credit as our history will indicate.

As of (date), (your name)’s income was reduced by xx% (or you can use dollar amount). We have made financial adjustments to our personal budget to decrease monthly expenses and to help remain in good standing on our mortgage payments. The following adjustments have been made (fill in blank) ______.

(example: selling our 2006 vehicle to purchase a 2001 to cut our car payment in half. We have reduced unnecessary cell phone, internet and cable services. We have reviewed our home owners and auto insurance policies with various carriers and have found we still have the lowest rates possible while maintaining proper coverage. We have also canceled gym memberships);

however, with these steps taken, we are still finding it necessary to request a modification to our loans.Now that our situation has changed, we are seeking a solution and possible loan modification program that we may qualify for similar to the “Making Home Affordable” program. We believe this will help us to remain in good standing as we have been in the past, by reducing our overall monthly mortgage loan(s) of $1x,xxx by at least $300/mo.

We are making every effort to bring our account current and get to a place where (bank name) will see these positive changes. In the meantime, we are asking for help that we believe will relieve the pressure on our current financial budget and keep our loans with (bank name) in good standing. Thank you for taking our case into consideration. I have attached financial reports to help show our present financial status. If you require further financial information or other documentation, please contact me at one of the numbers above.

Thank you again,

If you’re interested in finding out How to Save Your Home from Foreclosure – like I did! You can watch my 20 minute foreclosure video here.. Check here for free reprint license: Sample Hardship Letter.

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