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Foreclosure Hardship Letter

The foreclosure hardship letter is an important part of any loan modification or short sale package. These types of financial arrangements are available to individuals facing foreclosure. Loan modifications are used when homeowners want to save their home from foreclosure and have the financial means to get back on track with delinquent payments. Short sales are used when the homeowner does not have the ability to become current on payments. When lenders accept short sale offers they allow homeowners to sell their home for less than the amount owed on the mortgage note.

For most people, the foreclosure hardship letter is the most difficult thing to write. Unless you are a professional writer, it is challenging to sit down and express the circumstances that have caused you to fall behind on your mortgage payments. Keep in mind the hardship letter will be read by a Loss Mitigator who works for the lending institution. Loss mitigators read several hardship letters every day, so you will want to keep it short and to the point.

Some experts suggest hand writing the foreclosure hardship letter. Others say it should be typed. There really is no right or wrong way. However, if your handwriting is hard to read, you can either choose to have someone else write the letter for you or type it out. Since the hardship letter is crucial to a successful transaction, it is imperative the loss mitigator can easily read it.

When writing the foreclosure hardship letter, use a business format. Include your name, address, city, state, zip and phone number at the top of the paper. Next, include the name of the loss mitigator, lending institution, address. The next line should include the current date, then your loan number. The body of the letter should be between four to six paragraphs. Close the letter with by signing and printing your name.

The following is an example of the foreclosure hardship letter format:

Joe and Jane Smith
123 Anywhere Street
Anytown, State 12345

Sue Jones
Any Town Lender
123 Anywhere Street
Anytown, State 12345

Today's Date

RE: Your Loan Number (include either Loan Modification or Short Sale)

Dear Ms. Jones,

I (we) am contacting you today to explain the circumstances which have caused me to fall behind on my mortgage payments. Although I have done everything possible to improve my financial situation, I am still short on the money owed to you. I would greatly appreciate the opportunity to obtain a loan modification (or short sale).

The primary reason I have become delinquent in my mortgage payments is (explain the reason here). Since I do not have enough income to pay my regular monthly mortgage payment, I am falling further behind and am concerned I will not be able to pay what is owed. I truly want to pay what is owed, but at this time do not know how to accomplish this. Therefore, I am turning to you for assistance.

I am asking for consideration to temporarily reduce or suspend my mortgage payments for a few months. Doing so, would help me get back on track. My home means a great deal to me and I desire to work with you to keep it out of foreclosure. Please advise me of all options available to stop foreclosure at your earliest convenience. I am anxious to reach an agreement and appreciate your prompt response.

Respectfully yours,

Print name of Borrower(s)
Signature of Borrower(s)
Loan #
email address (if applicable)

Send the foreclosure hardship letter via certified mail with a return receipt requested. This will ensure you have proof you sent the letter. The return receipt must be signed by someone at the lending institution and the signature card will be returned to you in the mail.

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Published on May 17, 2008 at 10:52 PM | Comments: 6

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You should contact some realtors and see what the values of other homes are in your neighborhood. If the value is of reasonable value you should call to stop foreclosure on the home soon.

Stop Home Foreclosure | May 20, 2008 12:30 AM


Is the same format used for a short sale hardship letter. Do you have an example of one for short sale.

Anonymous | February 18, 2009 2:35 PM


We have many people ask about more samples of short sale hardship letters. So we are going to re-launch the latest version of the EBook in the next few days. Go to: and get your copy it explains everything and can increase your chances to get your short sale approved.

Simon Volkov | February 18, 2009 2:55 PM


Thanks for the helpful tips here. I've got a home improvement blog that I work really hard on like you are doing here. My efforts tend to lean towards more general topics and hopefully offer high level answers for what people are looking for. Keep on doing a great job with your blog

folding camper | December 5, 2009 12:24 PM


I could't beleive that I have found this site. It is very helpful and very great info.

Thank you!!! very much.



Kimvun Suos | February 17, 2010 6:52 PM


I am only 50 but can’t believe how everyone needs advice on how to survive an economic disaster or how anyone even got into an bad economic situation. Health problems should be the only excuse.

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