This is a sample hardship letter that can be used when requesting a loan modification. 

To: ABC Mortgage

account # 058989482

Re: Modification Request

Due to the recent adjustment of my mortgage rate I currently have with your company, I am finding it extremely hard to afford the new payment. I have a 2 year fixed rate which has already adjustable and is schedule to adjust again in 6 months.

Considering my current income I can not afford the increased payments of my mortgage. I am confident that there is way to renegotiate the terms of my current mortgage to avoid a foreclosure of my home.

 Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.

I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.

The main problem is that my property is now worth about 5-10% less than what I paid for it which is preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications.

I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income.

thanks you for your time and consideration.