A Loan Modification Hardship Letter states the complete current financial situation of the borrower. This hardship letter written by borrower includes the explanation of the circumstances that caused financial hardship. This letter offers a good opportunity to the borrower to explain their problems and also the steps that they took to deal with the problem. An effective loan modification hardship letter informs the lender of your acceptable financial hardship and can guarantee the lender that if given the chance; the loan will be paid on time. The acceptable hardship can be a loss of job, divorce or separation, job relocation, death of the home owner and medical illness.   

So it is important for you to write a persuasive loan modification hardship letter.  It should be brief but also tells the lender about your financial situation.  Always be aware that lenders are mostly surrounded with the anxious homeowners, who are trying to find a better option to save their home.

There are some tips that can be followed while writing a loan modification hardship letter:

1. It must not be too long
2. Description of the circumstances that caused financial hardship
3. Corrective measures that were taken to fix the financial situation
4. Provide the lender a complete plan to get back on normal track
5. Assurance to the lender that you simply need a second chance to save your home

Act smartly and pro-actively to arrive at a new lower monthly payment. Work closely with the lenders and modify the terms. A convincing loan modification hardship letter along with the income documentation and financial statement can solve your problems.