What a hardship letter should include …
Whether it is a foreclosure hardship letter or short sale hardship letter, it should comprise of the following points:
Identifying information including the homeowner’s name, address and account number.
Mention what hardship you’re going through and possible reasons for it.
You should specify the exact dates of the hardship.
Give a brief overview of your income, expenses and mention if you’re expecting a change in your income. Also inform the lender about any lump sum amount you have in order to compensate for the default.
Give a brief explanation of the workout plan you wish to pursue and state the reasons as to why you think it may work for you.
Include the ways and the time you or your counselor (who’ll negotiate with the lender) can be contacted by the lender.
Apart from including the above points while writing a real estate hardship letter, you should provide attachments related to your income, expenses, financial statements to prove your assets, liabilities, tax returns for the previous years, current pay stubs etc. If however, your home is on the market, then you’ll have to provide a copy of the realtor agreement along with the hardship letter to stop foreclosure.
Types of hardship that the lender may accept…
Here’s a list of hardship for which your hardship letter may be accepted by lenders.
Loss of employment
Medical problems due to which you aren’t able to maintain your job.
Reduction in salary
You may be a single parent with not much income and no child support
You’re a victim of some disaster
Death of spouse or co-borrower
Marital separation
Types of hardship lenders may not accept…
Your hardship letter may be rejected due to the reasons given below.
You’re a student and cannot pay off the mortgage
You’re going through divorce
Your spouse have threatened to file bankruptcy

READY? Get out the paper (or computer), write an outline of the letter (include topics you’re going to expand on), then get specific about your hardship and how a loan modification will correct the problem and keep it from happening again. If the bank doesn’t see an end to the problems you’re having, they’ll be less likely to give you the attention you’re requesting. Ideal length for your letter is between 1 full page up to about 1 1/2 pages… you definitely shouldn’t go over the 2 pages in length.

ONE LAST ITEM: Don’t ask for a loan modification if you obtained your loan by embellishing the facts on your application. Your actions may implicate you in having committed loan fraud.

Related posts:

1. About loan modification
2. Knowledge about refinance mortgage
3. If I use an installment loan to pay down my revolving credit card balances, Can it affect my credit score?