A home loan modification letter, sometimes also called a hardship letter, is a request from a borrower to a lender to change the terms of a home loan. Borrowers typically write these letters when they can no longer afford to make their mortgage payments, explains Bankrate.
A home loan modification letter should include the reasons for the request and viable suggestions for the modification. Reasons for a home loan modification that a lender may consider acceptable include decreased income, death or illness of the primary earner in the home, or an unsustainable rise in the mortgage's adjustable rate, according to Bankrate. Possible viable modifications include reduction of the mortgage balance if the home has lost value, or reduction of the interest rate.