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Loan Modification Hardship Letter

Updated July 19, 2023

A loan modification hardship letter is used by a borrower to request a temporary or permanent change in the terms of repayment due to unforeseen financial hardship. Requested modification can range from a reduced monthly payment amount, a lower interest rate, or forgiveness of late fees. This letter is commonly used for mortgage loans and other types of consumer loans, such as credit card or auto loans.


Ben Jones
1234 Glass Way
Los Angeles, CA 90021
(213) 987-6543

Nov. 2, 2022

Quick Loan Co.
444 Monetary Rd.
Los Angeles, CA 90021

To Whom It May Concern:

I am writing this letter to request a modification on my loan due to unforeseen financial hardship. When I was initially approved for this loan in 2018, my gross monthly income as a construction worker was $3,800. However, after injuring my neck on a bike accident a few weeks ago and consequently losing my job, I’m currently unable to sustain an income to continue making the $800 monthly payments on my loan.

In addition to losing my job, I am facing nearly $20,000 in medical bills from the accident, and with my weekly physical therapy sessions, that amount is only growing. Until I recover from my injuries and am able to begin working again, I will not be able to secure a full-time income. As such, I am requesting that my monthly payment amount is reduced from $800 to $400 for the next six months.

Please find attached a copy of my medical bills, accident report, bank statements, and employment termination letter. Thank you for your time and consideration.


Ben Jones