A hardship letter is written to a bank when you are seeking a loan modification will explain why you were not able to make payments on your loan and asks the bank to adjust the loan so that the bank won't have to end up with a bad loan on their books and you'll be able to make your monthly payments.
If the letter is being sent as a hard copy, then it should be in the proper business format, otherwise, if the letter is being emailed, it should have an appropriate subject line and proper grammar.
I am writing to explain the series of unfortunate events and situations that have causes me to fall behind on my mortgage payments. Though I have made cutbacks, I am unable to keep up with the current payments. Thus, I am asking [Lender Name] to modify my home loan. My focus is to keep my home and to repay my loan. Modifying my loan's rates and term will help me accomplish both of these goals.
I fell behind on my mortgage payments when [Insert the reasons here - be concise and clear so the reader understands the root of the issue.] Once I fell behind, it seemed more and more difficult to catch up. Thus, with late fees and interest, I have fallen even further behind. Because of this, I am unable to keep up with my current payments and make up past ones.
Despite [Insert financial cutbacks you made and/or alternate solutions you tried: This shows the lender that you have tried to find a solution on your own.], I have not been able to catch up. I want nothing more than to repay this mortgage. To accomplish this, I will need help.
A loan modification will help me pay back this home loan. My financial situation has improved so that I can make consistent payments. A lower payment would help me keep my home and also pay back what I owe to your organization.
I truly hope you will consider working with me to settle this matter. I am anxious to collaborate with you so that we can create a modified loan agreement. Thank you for your time.