The Hardship Letter is a document that must be created in your own words. Basically you want to get across to the bank that you did experience a hardship but are looking to resolve the situation with their help. I would also include if you saved any money that you are willing to put that towards a good faith deposit. Also include the new mortgage payment you can afford. Note: DO NOT CUT AND PASTE THIS LETTER. It is an example only, and must be in YOUR WORDS.

The basic premise of this letter is:

• The situation you were in which caused you to pay late/not pay was beyond your control
• You have vowed to never let it happen again
• Here are the things you have done to make sure it doesn’t happen.
• You’ve saved $XX amount of money to make a good faith payment
• You think you could afford a payment of $XX.XX

This letter is part of our do it yourself loan restructuring/modification program.

I am writing this letter to explain why I am currently facing foreclosure on my mortgage to you.

I am very distressed that this has ever happened to me, but I was <laid off>, <seriously injured>, <going through a death in family> . The circumstances drained my carefully put aside savings and in order to provide for my family I was forced to choose between mortgages payments and food. My financial advisor told me not to tap into my 401K.

This is a very embarrassing to me, I have always prided myself in paying on time, and I have taken steps to put away money in my savings account to guard against other unforeseen occurences like this. I guess I just did not put away enough. As a good faith payment, I would be willing to do a partial districution from my 401K towards the loan restructuring. Staying in my home is very important to myself and my family.

My wife and I have sat down togehter to review our finances and believe we could safely accomodate a payment of $1875/month over 30 years should you approve our loan restructuring.

Sincerely,

your signature