When you ask your lender or loan servicer to consider doing a loan modification, one of the things they will ask you for is a hardship letter. Do not underestimate the value of writing hardship letters for them. A hardship letter is a written explanation of what has made you fall behind on your loan payments, and why they should help you by modifying the terms of your loan. Knowing how to write a hardship letter can go a long way toward convincing your lender to do a loan modification for you.