Sample Hardship Letter for Loan Modification

Most of us try to pay off our loans – whether mortgage or personal finance – as quickly as we can, or at least, pay the installments on time. But one never knows when one might not have a choice but to fall behind on a payment or two. If you are presently going through a situation in which you are unable to pay off your loan, you might ask your bank for a modification to the terms of your loan agreement. You will need to write to them to do this – a hardship letter is what will prevail here.

A hardship letter is basically a request to a bank or a lending agency, providing them with information on your current financial status, and the problems that you may be going through, which are keeping you from making your payments on time. Most banks are quite flexible in these things and will provide you with a modification to your loan, making it easier for you to meet your financial obligations. But you have to provide a detailed explanation of why you fell behind your payments, and how you intend to make sure that something similar does not transpire again.


Sample Hardship Letter for Loan Modification


Lorna Kepler
89 South West Street
Chester, PA 52144
(000) 989-6754
Lorna @ email . com

October 5, 2016
Mr. Cecil Randle
Loan Officer
Bank of America
12 Renshaw Road
Chester, PA 19022


Dear Mr. Randle:

I am writing this letter in reference to the loan that I have acquired from the Bank of America (loan reference number BOA-99987-2212-A12). As you are aware, I am behind my payments due to some unavoidable circumstances. At this point in time, I would like to ask for a loan modification so that I can manage my finances more efficiently.

Under normal circumstances, I would not have had any problems making the 3 payments that I missed. However, I got laid off in July this year and was unable to find suitable employment to cover my expenses or pay off my loans for 3 months. Now that I have found employment (I am due to start on the 15th of this month), I believe that it will not be an issue to resume my payments from November onwards. However, it will be impossible for me to pay an accumulated amount of the previous three months in one go. I would appreciate it if you would create some kind of payment plan through which I can do this, without placing strain on my income.

Thank you for your willingness to help me at this extremely distressing time.



Lorna Kepler

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