How to write a hardship letter

Below you will find two free sample templates of a hardship letter that you can copy and use to stop a mortgage foreclosure, for a short sale or personal use with any of your creditors.

Send any one of these to your mortgage or credit card company to get the help you need. All you need to do is replace the company name with whomever you will be sending it to.

If you would like to copy  these hardship letters, then you must place a link back to this page. You can also download my free loan modification e-book right here to get everything you need to process your own modification or short sale.

I wish you the best in your fight!

Sample #1:

January 23, 2009
To: Countrywide Mortgage
Account # XXXXXXXXX

To Whom It May Concern:

Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2009.

Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default and help stop foreclosure on my home.

Is it possible to have my current adjustable rate mortgage converted to a fixed rate?

If this is not possible, can you postpone the next rate change to a future date to allow me to continue making affordable payments or refinance?  Any other solutions you could provide would be greatly appreciated.

I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.

The main problem is that my property is now worth about 5-10% less than what I paid for it which is preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications.

I believe this addresses the situation I currently find myself in along with many other homeowners.

Thank you for your time and consideration.

Sincerely,
Borrower’s Signature
Co-Borrower’s Signature (if applicable)

Sample Hardship Letter #2:

Date
Lender Name
Address
City State, Zip
Re:  Loan Number(s)

To Whom It May Concern:

The purpose of this letter to explain the unfortunate set of circumstances that have led to my mortgage delinquency (or proposed delinquency – if not late yet).  After exhausting all of my resources, I have but one avenue left, and that is to appeal to you for a mortgage loan modification.  I believe this would be a tremendous relief in my situation in that it would allow me/us to affordably keep the home I/we/my family love(s).

The main reason that caused me/us to be late is (insert reason here and don’t be too lengthy or too vague.  Please be sure to indicate the type of loan you have, if it is going to adjust, or has already adjusted, especially note if this is what created the hardship).  This has caused me to become further and further behind.  I am not in the position to refinance due to loss of values in the real estate market.

(Insert the approximate date of hardship and clarify if your situation is Temporary or will be Permanent.)

By obtaining a loan modification, I feel confident that I will be able to maintain my mortgage, and pay on the loan that has been afforded to me.  I hope you will consider working with me/us on this matter. 

Sincerely and Respectfully,
(Borrower’s Signature)
(Co-Borrower’s Signature)