Would You Show Me Some Examples Of Hardship Letter For A Loan Modification?

A hardship letter is a written description of why a borrower cannot or may not be able to make his or her mortgage payments. It is important that the letter include reasons for the hardship and plans for the future.

You may need to explain what event has led to you being unable to make your loan repayments. This event could be something such as illness, loss of job, reduced income, failed business, job relocation, death of a spouse, death, incarceration, divorce or marital separation, military duty, medical bills, damage to property or any other valid reason which may have led to a person being unable to meet their mortgage repayments.               

In the top left hand corner of the letter, place your name, followed by your address, your loan lender and then your loan number. In the first paragraph you should explain that you have been unable to pay your mortgage and would like to modify the loan. In the second paragraph you should explain why you have been unable to meet the payments. Thirdly, explain how your situation will be improving in the near future and a date as to when you believe you will be able to carry on with your normal mortgage repayments.

This should then be signed and if there are two names on the mortgage then both names and signatures should be included. Ensure you are thankful and appreciative in your tone so that whoever is reading the letter realises that you are not taking this service for granted because they do not necessarily have to give it to.

Attach important information such as bank statements, cash flow documents, income tax statements and letters of reference. A loan company is most likely to agree with a temporary modification of your mortgage if you offer at least a percentage of the money you were paying each month.

You will first need to work up a Hardship Letter.  You must be able to show that you are in a hardship position. 
Below is the info you would need to include in a hardship letter.

Contact Info
Loan Information
Remedy you are seeking
Cause of hardship
Current situation/financial status
Proposed solution

A one page letter is most effective because the lender will be more likely to actually read it.

A loan modification Letter of Hardship is a personal letter to the bank describing what has caused you to become delinquent or why you foresee a delinquency on your mortgage. This letter simply needs to state what the particulars are about your individual situation. Below is a list of DO's and don't's to assist you in preparing a Letter of Hardship to the bank.

DO
1. Make the letter about your individual situation. (example-job loss, family, medical, death, divorce, birth, Etc.....)
2. Include what you have done to help correct your situation. (example-getting a second job, reducing expenses, renting a room in your house, clipping coupons, downgrading vehicles, Etc.....)
3. Include in the letter why it is important for you and/or your family to keep the property. (keep the message as positive as possible.)
4. Include in your letter that if they were to modify your loan you could make the payment and will continue to do so.

DON'T
1. Blame the economy or the real estate market as the reason you are having trouble or foresee difficulty making your payments.
2. Say that the bank is rude or refuses to work with you.
3. Make the letter sound like the bank owes you something or that they put you in this situation. (keep in mind the bank does not have to modify your loan)
4. Ask the bank to take money off the balance that you owe. (the banks do not reduce amount owed they will only change interest rate and term of loan.)
5. Ask the bank to remove late fees or past due balances. (the bank
will always capitalize this back into the loan after modification.)

source: www.attorneyforloanmods.com