Hardship letters are what mortgage companies require in order to consider you for a “Work Out”. This is your chance to appeal to your lender for a second chance after you have been late on payments. Hardship letters are used to explain why you have been late on payment with legitimate reason. A death in the family or loss of job constitutes as legitimate reason. You must prove to your lenders that the situation was temporary and that you are now back on track, able to pay your mortgage on time.

Hardship letters could lead to your home loan modification. It isn’t your goal to convince your lender that you deserve a loan modification. It is your goal to prove that a loan modification will be successful considering your new financial situation. If your income seems unsteady, you may be denied. You must prove to your lender why a loan modification is a good solution for everyone.

Your hardship letter could be one of the most important documents you ever write. Take it seriously. First, consider your audience. Your letter will be forwarded to the Loss Mitigation department. This department deals with people who are “down on their luck” all day. Do not dwell on your short comings in your hardship letter. Your audience can not give you a modification because they feel sorry for you. They need facts. Try to be honest and professional. The truth of the situation will prove why you deserve help. Establish why you have hit hardship, how it affected you, and why it is temporary. Next, explain how you plan to make the rest of your payments on time. Give details on how much you are now earning and how much you can afford to pay them monthly. Be professional. Proofread your letter for misspellings and/or grammatical errors.