A hardship letter template is a guideline to follow when writing a request for loan modification to a bank. Banks require hardship letters before providing loan modifications.
The first part of the letter should describe the reasons the debtor qualifies for a loan modification. Common reasons include job loss, sickness and pay cuts. The second part of the letter describes how the debtor plans on rectifying or mitigating the situation that prevents him from making his loan payments; for example, looking for a new job. The last part of the letter explains how approval of a loan modification benefits both the debtor and the lender. In this section, the debtor mentions proposed payments or affordable interest rates.