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Sample Loan Modification Hardship Letter

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    A hardship letter for loan modification is written when you cannot pay your promised amount of loan payment for whatever purpose it was taken. With this letter, given that it is accepted, you will receive a new method of payment.

    This means you get lower interest rate and smaller periodical payment amount. Start the letter with your and your loan providers name and your loan purpose and number.

    In the main body explain why you need to modify your payment method. Give specific reason and do not stretch it too much.

    Attach documents with proper information about your financial condition and papers that explain your current payment method. Include your emergency contact number.

    The sample loan modification hardship letter is given below for your guideline.

    Loan Modification Request Letter

    (Your name)
    (Your address, also the address of the property in mortgage)
    (Loan identification number)

    (Creditors name)
    (Creditors address)

    Dear Sir/Madam,

    I am writing this letter to focus on my current financial instability and my inability to meet the requirements of loan payment. For the record I have lived up to the promise of our contract till now but some recent events have made me to apply for a more friendly system.

    Recently I have (the reason for your financial hardship. Keep it short and explain specific details. Also mention if it is permanent or temporary). I have attached my monthly balance sheet and income statement for your consideration.

    As you will find in there it is actually impossible for to me pay the fixed amount after the mandatory expenses are meet (refer to some needs like children education cost, medical bills etc).

    Therefore I need your help by giving me a loan modification. If you lower the interest rate by (propose a rate) and monthly (or any periodical) payment amount by (propose amount), I will be able to pay off my obligation without any problem. Thanks in advance for your consideration.

    Yours Sincerely,


    » Sample Mortgage Hardship Letter