Sample Foreclosure Hardship Letter for Borrowers to Mortgage Lenders

A foreclosure hardship letter allows borrowers toAnytown, State 12345
explain circumstances that caused them to becomeJohn Smith
delinquent on their mortgage note. Many peopleUSA Mortgage Lender
struggle with what to write to their lender and are123 Any Street
intimidated by the process. In order to obtain positiveAnytown, State 12345
results borrowers need to understand whatCurrent Date
information to include and how to present it.RE: Your Loan Number (include either loan modification
A well-written foreclosure hardship letter will receiveor short sale)
higher recognition than a poorly written document.Dear Mr. Smith,
Mortgage experts suggest a handwritten letter is moreI am contacting you to request a loan modification (or
effective than a typed hardship letter. If yourshort sale) for my home located at 123 Any Avenue in
handwriting is difficult to read, have someone elseAnytown, State. I appreciate you allowing me to
write your explanation for you or type it out ifexplain the circumstances that caused me to fall
necessary. Considering letters of hardship are thebehind with mortgage payments. Although I have done
most important financial document you will ever write,everything possible to reduce monthly expenses, I am
take every precaution to ensure it can be easily readstill unable to pay my mortgage payment in full each
and understood.month.
Foreclosure hardship letters are used when borrowersI became delinquent with my mortgage because
want to obtain a loan modification to avoid foreclosure(explain reason here). Currently, I do not earn enough
or receive short sale approval. Short sales are typicallyincome to cover the entire amount and am concerned
offered only after all other methods to save the homeabout falling further behind. I have every desire to pay
from foreclosure have been exhausted.the past due amount, but based on my current income
All transactions which involve altering terms ofI do not know how to accomplish this. I am turning to
mortgage loans are handled through the lender's lossyou for assistance.
mitigation division. Loss mitigators work with borrowersThis letter is a request for consideration to temporarily
facing financial challenges every day. They have heardreduce or suspend my mortgage payments through a
every sob story, excuse and outright lies, so it is bestloan modification. This would allow me to time to get
to be upfront and honest from the beginning.back on track financially and become current on
When possible, take time to develop a good workingmonthly payments.
relationship with your assigned loss mitigator. Start byMy home is very important to me and I do not want
asking questions of what can be expected, duration ofthe property to fall into foreclosure. Please advise me
the process, and eventual outcome.of available options that can allow me to keep my
Loss mitigators work as mediators between lendershome. I am eager to reach an agreement and
and borrowers. They do not make final decisionsappreciate your prompt response.
regarding mortgage loans, but can be instrumental inSincerely,
helping you achieve your goals. If you have legitimatePrint name of Borrower(s)
reasons for not being able to remain current onSignature of Borrower(s)
mortgage payments, lenders are usually willing to work##
with you.Send the foreclosure hardship letter via the United
The following sample foreclosure hardship letter offersStates Postal Service as certified mail with return
a basic outline of information which should be included.receipt request. When the lender receives the letter, an
You will need to make adjustments and fill in theemployee must sign the receipt which is then returned
blanks based on your personal circumstances.to you. Attach the signed receipt to a copy of the
##original letter of hardship. This provides proof the letter
Sam Joneswas received by the mortgage lender.
123 Any Avenue