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1. Be honest
You do not want to lie on your hardship letter. If you do, chances are it will come back to bite you. Your hardship letter should include documentation to prove that you are unemployed, or receiving a certain amount of income; if you make a story up, or exaggerate, it will do you no good. If you truly in a bind, and can’t make payments on your home for a good reason, it will shine through in your letter and your loan modification will have a better chance.
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To Whom It May Concern:
I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.
I have had no problem making my payments for over four years now including extra principal whenever possible and do not want that to change. The main reason that caused us to be late is that I purchased my home at 2005 in May. At that time I was employed by Motorola and business was very good. My salary and the possibility of a promotion and raise made me sure that I could easily support my mortgage. Although, holding my position so strong for so many years, unfortunately, a downturn in the market caused my company to reduce its workforce and I was laid off (loss of Job)
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Since one of the first things you’ll need to do when starting the loan modification process is to write a hardship letter, I thought it would be good to start a series of examples. As you can see in the example below, the writer clearly presents the case for a modification by pointing out:

1. Their financial hardship

2. Steps they have taken to prevent foreclosure

3. An outline of their finances, or lack thereof

Read on…
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One of the items your lender or servicer will ask for during the loan workout or loan modification process is a hardship letter. A hardship letter is a written explanation as to what “event” has caused you to fall behind on your mortgage and it vital in helping you stop foreclosure.

This letter acts much like an outline or biography of your current “life” issues that are affecting your ability to meet your financial obligations.
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