Writing a Hardship Letter for a Loan Modification
There are many options for loan modification, all of which you will probably want to explore to avoid the hassle and stress of a foreclosure. The lending company will likely be amenable to modification options, since the foreclosure/repossession process is not a simple one for the lender, and the company would likely rather get whatever money it can, even if it's less than the original agreement.
Writing a hardship letter is one step in the process of getting a lender to work with you on a loan modification. Writing this letter might seem like a daunting task, but if you follow these steps, you might find the process slightly easier:
1. Be real with your feelings. Your reasons for loan modification may stem from a death in your family, the loss of a job, medical issues, or some other major problem. Whatever it is, it is causing you stress and turmoil, and you may even be experiencing some panic. Your tendency may be to try to keep your hardship letter cut and dry, without emotion, but this is not the right attitude. While your writing should be professional at all times, emotion is your friend in this situation, so use it. The person reading the letter needs to feel what you are feeling, so write from the heart. And be gracious; the person reading the letter reads many of them every day, and a simple "thank you for reading this letter" may get you further than you think.
2. Be specific. Write as much about the details of your hardship as you can. Use numbers, dates, and provide records, all to prove to the lender that you are in a serious situation. Specify the plan you have in mind for modifying the loan.
3. Be brief. Though you need to make sure to include all the relevant details, including as much emotion as you can muster, also keep in mind that the person who reads these letters read dozens every day. He/she will appreciate your brevity, and will be more inclined to actually read your entire letter if he/she doesn't have to spend half his/her day doing so.
Index of Hardship Letter Examples