How to Write a Letter of Apology

Most lenders will demand delinquent debtors to prepare a hardship letter before evaluating loan work-out possibilities.

A financial hardship is caused by an inevitable decrease in income or an unavoidable rise in costs. Lenders are likely to take into account:

Reduced-hours or hourly wage requirements
Underemployment after the loss of a prior job Death of a borrower
If you work for yourself, your wages will suffer.
Disability, whether permanent or temporary
A household member’s serious sickness Divorce
Unemployment
Significant medical expenditures
Disaster
Property repairs are required immediately.
Child care costs have risen.
Mortgage loan and payment modifications

Keep your hardship letter succinct and to the point: no more than four paragraphs and no more than two pages.

Include the following:

Name(s), address(es), phone number(s), and loan number(s) of the homeowner(s).
Relevant loan or property information, such as the number of months overdue, property valuation, or equity.
The causes for falling behind on your monthly payments. Be straightforward.
A summary of your financial position. This should include: activities made to decrease spending and improve income; financial counseling or other steps taken to fix the problem; and the amount of money saved to pay off the delinquent.
A brief description of your aim to avoid foreclosure. Your hardship letter is first and foremost a negotiation, then an explanation. If you seek a loan modification, explain why you feel you will be successful in bringing their mortgage payments current; if you seek another alternative, such as a deed in lieu of foreclosure or short sale, explain why you believe that solution will be successful.
Relevant papers, such as information on your household’s monthly gross (pre-tax) income.
your most recent income tax return.
information about your savings and other valuables.
your mortgage statement every month.
Any second mortgage or home equity line of credit on your property.
Your credit card account balances and minimum monthly payments are due.
account balances and monthly payments on your other obligations and personal loans.

Be humble and grateful. Avoid any blame games or side concerns. Be courteous and thank the lender in advance for taking the time to assess your case.