TCS Foreclosures, Foreclosure Hardship Letter Sample For Loss Mitigation --- A foreclosure hardship letter is used when homeowners are facing foreclosure. It is an integral part of any loan modification or short sale package. Loan modifications are offered to homeowners who want to save their home from foreclosure and have the financial means to become current on delinquent payments. Short sales are offered to homeowners who are unable to become current on their mortgage note. Lenders who accept short sale offers agree to accept less than the amount owed.