A loan modification hardship letter is one that is written by a borrower to a lender requesting for loan modification due to some hardship. In this letter one should explain the financial situation, and the reasons why one is unable to make the loan payments. A sample loan modification hardship letter is given here under for reference and use :

Sample Loan Modification Hardship Letter:

The Bank Manager,

#4, Lord’s Street,

ANZ Bank,
Yorkshire, London, YK23

3rd June 2014

Subject: Loan Modification Hardship Letter

Dear Sir,

I Linda Logan, am writing this letter with reference to the loan number EBA-789 dated 1st March 2011. I am writing to explain the extreme financial hardship that my family will face if interest rate will increase by 2.5%p.a on this loan. This interest rate adjustment will cause our payment to dramatically increase by 2000 Euro per month which we will not be able to meet with our current gross family income. As a matter of fact, a monthly increase of this amount will ruin us financially.

We would be thankful for the opportunity to rehash out a loan modification where our interest rate will be fixed at the 8.9% p.a for the duration of the loan.

Please take the time to review the information we submitted and consider our request. It is very important to us that we keep our account in good standing and preserve our credit rating as well as protect our main asset i.e. our home.

Thank you in advance for your time and consideration in this matter. We are looking forward to working with options to resolve this situation.

Sincerely and Respectfully,

Linda Logan