Writing a Compelling Hardship Letter for Loan Modification

This article is posted under Personal finance

The hardship letter is one of the most important requirements for your loan modification application.  Basically, this letter explains to the lender why you are in need of a loan modification and how the modification can help you get in better shape financially.  This article will give five easy steps to help you write a compelling hardship letter.

Steps on writing a hardship letter for loan modification

Step 1:  Understand your financial state.
The first step to writing a good hardship letter is to understand your current financial status.  Take into consideration your outstanding debts, monthly income, employment, credit report, and any other significant financial factors.

Step 2:  Understand your hardship.
Next, understand what is causing the financial strain in your life.  Is it a divorce, loss of job, inability to work, medical bills, or any other kind of hardship?  This will help you explain your financial hardship through your letter.

Step 3:  Read some hardship letter samples.
Now that you have a better understanding of your situation, it’s time to get yourself familiar with what a hardship letter is and how it is written.  The best way to do this is to read some hardship letter samples.  Remember to analyze the structure, format, themes, topics, and general feel of the hardship letter.

Step 4:  Compose a draft.
Write a draft of your hardship letter and be sure to integrate some of the elements that you found in the sample hardship letter.  Remember, your letter should be honest, concise, and complete.

Step 5:  Proofread, edit, revise.
Finally, review your draft and make any changes that you need to make.  Ensure that there are no typographical errors and make sure that your letter is easy to read.  You may want to have others help you in revising your hardship letter to perfection.

Common mistakes to avoid:
-  Making use of inaccurate, incomplete, or false information
-  Waiting too long before writing and sending the letter
-  Having a hardship that is not valid

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