A hardship letter is required from you since it will inform your lender of the things which he needs to be knowledgeable about. Since there are many loan modification requests which are being denied, it is important to know how you can write a letter properly so that you do not get rejected.

The important thing you must remember when writing your hardship letter is that it should depict your current financial dilemma which you are going through to your lending institution. In addition, you should also explain the reason why you require a modified loan. You must also let them see that through this loan modification program, you can repay your loan with them. But most of all, your lender should see that you are still determined to keep your home, and it is on the top of your financial priorities.

When writing your hardship letter, you must let your lender know the real story behind the downfall of your expenses. But at the same time, you should stick to just the basic facts. In addition, you should be brief and concise. It is more important to be sincere with your hardship letter than to write a piece which you intend to be an eye-opener. However, the most important factor your letter should be is, to be honest. You should let your lender know just how important it is for you to be able to keep your home as well as let them know that a loan modification is the only option left that you have so you can repay your loan.

You have to remember though, and there are a lot of other people who are applying for the loan modification program, especially with the current economic crisis. Your hardship letter should only be a few pages or even shorter. You must present a positive attitude with your letter as well as what your plan of action is so that you can get your finances back in control once again.

Finding an example of a hardship letter for a loan modification is never as straightforward as it seems. Most examples won’t go over the more potent points that are essential for success, and even when they do, you don’t get much out of it. This article will change that. I’ll give you a killer outline that you can use to draft a winning hardship letter, and even if you end up getting one professionally drafted, you’ll be able to gauge its suitability and strengths.

1. Preliminary Section
   The letter won’t start any different from your conventional letter in the sense that you’ll still need to include your personal details, the details of who you are writing to. The only difference is that your hardship letter must contain some reference to your existing mortgage. Usually, a reference number included at the top is enough.
2. Intro & Case Presentation
   You want to get right into the meat of ‘why’ you are writing. Naturally, you should introduce yourself, but don’t spend too much time on this. The sooner you get into why you are writing, the better. At the end of this brief section, you also start to make a case for why you should be helped.
3. Hardship Details
   This is where you start to give some background to your hardship. Anything that supports your claim should be included here. If you’ve lost a job, had unexpected medical emergencies, had serious marital problems like divorce, mention it here. This helps to paint a picture of why you need help. In this instance, the more you can divulge, the better.
4. What You Intend To Do
   Once you’ve outlined the background to your predicament, you need to show how you intend to fix it. Of course, part of the process of fixing it is seeking a modification, but you’ll still have a responsibility to make payments. At this stage, you should be outlining what you intend or have started doing to ensure payments can and will be maintained. If you’ve taken a second job, mention it and provide some proof if you can.

Outline the basic template that you can follow for a winning hardship letter.

1) Account Number
This is your loan number and can be had from your mortgage statement.

2) Your Personal Details
Name and address. Telephone numbers if applicable. You can also enter an email address here if you have one

3) Addressee
This is the person who is potentially going to read your letter. If it’s an application through your local mortgage provider, you can call and find out the person’s details and enter it here.

4) Statement Of Your Case
This is where you introduce yourself and your reasons for seeking a modifying loan. You’ll get an opportunity to elaborate later on so keep it simple here. Just explain that you are falling behind on your mortgage payments and you are writing in the hope that you’ll be able to get some help through a modifying loan.

5) Background To Your Hardship
This is where you outline the reasons you are falling behind. If you’ve lost a job, been made redundant or have had unexpected medical bills, this is where you mention it. Try to evoke some compassion here from your reader. Whatever you do, don’t launch into a begging scenario.

6) Your Plan Of Action
This is where you illustrate any plans you’ve made to remedy your situation. If you have taken a new or second job mention this here. Your best approach is to show that you are enthusiastic about getting back on track, and you are only seeking help to kick-start the process.

When closing, do so with gusto. Let the lender know that you are optimistic about the future and that if you are approved for the loan, you are eager to get to work repaying the loan. You see, the hardship letter is so important that you really ought not to attempt one on your own. A poorly drafted letter is an instant decline of the application so, it’s best to let a loan modification company do it for you.

Your hardship letters for loan modifications need to tell your lender that you are responsible and diligent. It is just unfortunate that you went through this tough financial problem which you are currently facing. Once your lender finds your letter serious and trustworthy, you just might save your home from getting foreclosed.