SAMPLE HARDSHIP LETTER
RE: Bob and Bonnie Borrower
City, State Zip
Dear (servicer) representative:
[State what type of work-out plan you are seeking.]
This letter is to support our application for a loan modification plan that will help us to get our mortgage
payments back on track with an affordable mortgage. We have lived in our home for over 20 years and we
want to work hard and keep it.
[Explain special hardship circumstances. Tell your story briefly but include important points about the
hardships you face.]
Our youngest child is learning disabled and attends a special program at school. If we lose the home we will
probably have to move out of this school district. (There are few rental properties.) Our doctor has said that
moving is likely to disrupt our boy’s development.
[Explain what caused you to fall behind.]
We fell behind on our mortgage payments due to loss of income because of a lay-off.
Bob has been employed in the construction business for more than 20 years as a plasterer and mason. He was
laid off by his prior employer last September and his unemployment compensation was only 60% of his prior
income. Bonnie was able to increase her hours as a sales assistant as of December 1 to make up part of the
difference, but we were unable to make full mortgage payments for December through April. Our partial
payments were returned by you.
[Explain your plan for getting payments back on track. Convince the lender that you have a plan that will
*note: If you will still have negative cash flow after a reduced mortgage payment, you need to show the lender
more changes you make to be able to afford the new payments.