The Do’s and Don’ts of a Hardship Letter

With the number of foreclosures touching unprecedented highs each month, home owners are desperately seeking options which may help them to save their homes. One such option is a home loan modification. Even though the requirements for securing a mortgage modification are not as stringent as the requirements for refinancing, a home loan modification hardship letter will be a deciding factor. So it is important to learn about the do’s and don’ts of a mortgage modification hardship letter well in advance to avoid costly mistakes.


Make sure that your letter includes your full name and your current address and other current contact information so that the lender knows who is asking for the home loan modification and how they can get in touch with you.

Clearly and explicitly state your current financial condition and the factors that led to it. It is important to mention why you are asking for a mortgage modification. Also you need to show the bank that you are indeed a valid candidate for receiving a home loan modification. So make sure that you maintain a polite tone in your letter after all the financial institution is doing you a favor by renegotiating the terms of your mortgage.

You need to show the bank that you are a trustworthy and responsible person and if they do grant you a home loan modification you can and will make the monthly payments.


It is important to NOT make your mortgage modification hardship letter too lengthy. There is a strong possibility that the person handling your case must have heard all the possible reasons for asking for a home loan modification. Also even though issues such as death in the family and divorce or separation do qualify as valid reasons for seeking a mortgage modification it is imperative to not make your letter too emotional.

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Also, do not mention other loans that you may have defaulted on; you are supposed to project the image or a responsible person who will meet the monthly payments if a mortgage modification is granted.