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When there’s just no way to continue paying on your current mortgage, and especially if refinancing is not an option, you need to get your loan modified. One of the first steps in the loan modification process is to draft a loan modification hardship letter to explain to your lender why you need it. The sad part is that many loan modifications are actually turned down simply because a person doesn’t really know how to write a loan modification hardship letter that is effective.

The purpose of the hardship letter is to explain your financial situation to the lender, tell them why you are in need of a modification, and to convince them that modification is the only way for you to keep your home. You must demonstrate in the letter that you’re dead set on keeping your home, and that it’s more important to you than any other financial obligation right now.

While the lenders want to know about your financial ‘hardships,’ don’t take it too literally. They don’t want a sob story about every trial and tribulation in your life, nor do they want a letter the length of a novel telling them every woe you have right now. Be sincere but not melodramatic or whiny. Be frank and honest about your situation and how the bottom line is that you’re desperate to hold onto your home and loan modification is the only way to do it. Assure them that paying your monthly payment is your top priority, and you will never default again if the loan is modified.

With the current state of the housing market, lenders are hearing from all kinds of frantic homeowners, and if you’re not careful about the kind of hardship letter you write it may be overlooked. Keep it short and concise, no more than a few pages at most. You should not just beg for sympathy and leniency, but be proactive and propose a plan of action that will help get you back on track. Make sure you get across in your letter that you are not an irresponsible person who will just default again on a modified loan. You want the lender to read between the lines of your letter and see that you are a hard-working, decent homeowner who simply fell on rough times. All you need is a second chance.

A financial counselor can provide you with advice on how to write a loan modification hardship letter, and it’s advisable that you take advantage of their services. Search online for hardship letter templates as well to get an idea of what your letter should be like.