You decided that a home loan modification fits your situation, you sent an application along with a hardship letter. You did every thing correctly, but when the response comes, it's negative. You ask why, you call the lender up and they don't tell you anything you want to hear. The simple answer, most of the time is the hardship letter. A correctly written and formatted letter is the only thing that sets you apart from other homeowners that are also applying for a loan modification. If you send a sloppy, not well written, untruthful hardship letter, the lender will not look on to you with much trust and will reject your application. After that you might have no other options other then foreclosure. If you don't want to repeat the same mistake, you should follow a few simple guidelines when writing your hardship letter.
The most important thing you need to remember is that you always need to be truthful and don't be vague, don't invent any excuses that may make you like irresponsible. Although describe your hardships, don't make the hardship letter longer then 2 pages. Lenders don't want to be bogged down, if they see a booklet sized hardship letter, they will know something is up. They will just put it in the bottom of the pile. For them time is money. Always thank them for their time, remember no one, not even the government can make them modify your mortgage.
There are a few things you should not include in your letter. You should never threaten the lender with non payment or other threats. Don't include any information that will make you look irresponsible.
A properly written hardship letter is a good first step in getting your loan modified, but there are other pitfalls that you can fall into. If you don't know the subject to well, your lender might not give you their best offer. That is why it is important that you have as many resources and help as possible.