Sample Hardship Letter

Name…………………… Address…………………

State

Date

Bank name…………………….. Bank Address………………… State

Re: Mortgage Modification

Ref. Loan A/c. Number:……………………

To Whom It May Concern

Due to a recent adjustment made in my mortgage, I am finding it very difficult to afford the revised repayment. I currently have a 10 years’ adjustable rate mortgage which is scheduled to adjust again on 20^th October 2010. At my current income, I am unable to afford the increased repayments when the mortgage adjusts. I wish to avoid default or foreclosure on my home and hence wonder if we can work together to reach this end.

One thing that would help is to have my existing adjustable rate mortgage converted to a fixed rate. However, I am willing to discuss any other option you may suggest. Over the past 5 years of this mortgage, I was consistently on time on my repayments and I wish I am able to stay current.

I had anticipated affording refinancing in order to reduce my monthly payment, but with the prevalent downward trend in the housing market, I am unable to meet the refinancing guidelines. One of the factors leading to my ineligibility for refinancing is the fact that my house is worth 68% less than what I purchased it at. I believe Fannie Mae Announcement #09-16 (Oct. 7^th 2004) regarding the servicing of Conventional Mortgage Modifications applies to my situation. I have included recent pay stubs besides W-2s for the past 5 years. Please let me know if you require any other documentation and I will be glad to provide the same at the earliest.

Thank you for your time and consideration.

Yours truly,