To be considered for a workout on your home mortgage loan, most mortgage companies require you to submit a hardship letter.  This letter tells the lender why you feel you deserve another chance to keep your home through a mortgage modification.  Here are some guidelines for writing a hardship letter to send to your lender.

The first part is easy.  You need to provide the information that the mortgage company will need in order to identify your account.  Start with a block of information at the top of the page that makes it easy for the lender to pull up your account information.  Here is an example:

Name:  Janet Jones

Address:  555 Easy St., Toledo, OH  12345

Mortgage Company:  ABC Lending, Inc.

Loan Number:  12354-7895

Your opening line should be short and get right to the point.  Here is a good example:

I would like to request a review to determine whether my financial situation might qualify me for a loan modification workout.
Now provide an explanation of the reasons you have been unable to pay your mortgage payments on time.  This should be a brief overview only; you will expand on it later.  A good example of a hardship explanation follows:

I have had trouble paying my mortgage payments on time because ________________.

You should fill in the blank with whatever circumstance has prevented you from making your payments in a timely manner.  This could be divorce, loss of a job, medical expenses, illness, an increase in the amount of your mortgage payment, the death of your spouse, or anything else that interferes with your ability to make your payments.
Make sure you give a time frame for when your financial situation changed and indicate whether the situation is permanent or temporary.  Keep in mind that many mortgage companies will not work with you if your change in circumstances is permanent.  You will have an easier time getting a mortgage workout for a temporary hardship.  Here is an example of how you might word this statement:

I began experiencing financial difficulties in June 2009, and I expect my reduced income to be temporary.

Now you need to provide more details on your financial situation.  Give a complete explanation, but keep it as short as you can.  Here is an example:

My business failed in June, and I was without work for a few months.  I did not have enough money in savings to keep up with my mortgage payments and other bills during that time.  However, I now have a new job and am making enough money to cover my expenses.  I am able to begin paying my mortgage payments again immediately.

Next, write a statement that you are telling the truth and sign the letter.  For example, you could write:

I, Janet Jones, hereby swear that everything in this letter is true and accurate to the best of my knowledge.

(Signature)

That’s all there is to it.  You’ve just written a hardship letter to your mortgage company.  You are now one step closer to getting that much-needed mortgage modification.