To write a hardship letter to avoid foreclosure, start by explaining the purpose of the letter, such as a loan modification, in a compelling yet concise way, and then provide additional details in the next paragraphs, recommends Mortgage Relief Project. State a convincing reason, such as income loss, supporting your lack of financial capability to make mortgage payments. Include only essential details in a single-page letter, as lenders often do not read long hardship letters.
Lenders consider income loss, medical costs, military service, or death of a family member or co-borrower as valid hardships, reports Mortgage Relief Project. Divorce and other unexpected, considerable expenses also qualify as hardships. Explain the events that led to the hardship, emphasize that the situation was beyond your control, and inform the lender that the purpose of your letter is the only solution to avoid foreclosure.
In addition to specifying your hardship, state that you intend to keep up with mortgage payments if the lender approves your request for loan modification, suggests Mortgage Relief Project. Include your plans on how to make payments on time. Persuade the lender by restating your purpose at the end of the letter.
Be polite and humble throughout the letter, notes Mortgage Relief Project. Seek help from an experienced foreclosure attorney in writing a hardship letter and submitting all necessary documents.