Hardship Letter and
How To Write It

A good hardship letter is one of the important documents that will be required by your lender in the event that you are behind on your payments and are asking for help.

When you can't make your mortgage payments, you should first contact a mortgage specialist to find out what kind of help you qualify for. Working with a 3rd party will give you an objective outlook of your situation and you will be given more options than what your lender will offer.

In the past the only available solution your lender would have offered was a forbearance plan . Things today are different. In many cases you can get help when you are behind on your mortgage or even if you are struggling with your monthly payments. Loan modification is one of your best options if you can qualify for it.

The documents that will be required for your case to be evaluated by your lender will include a hardship letter. Your letter has to express that you are determined to keep your home. You want to illustrate in your hardship letter that you have come across some difficult situation or circumstance that caused you the financial hardship.Your difficulties have to be genuine and verifiable. Remember that when you signed your loan documents there was no clause allowing for late or reduced payments.

Here are some causes for hardship:

• Loss of employment
• Loss of (or reduced) income
• A recent divorce or separation
• A recent medical condition and/or overwhelming medical bills
• Excessive debt
• Death of a spouse, family member or co-income generator
• Increase of monthly payment obligations
• Loss or failure of business
• Illness and/or medical condition that interferes with income-generating abilities
• Property damage or destruction
• Call to military service
• Incarceration
• Inability to refinance due to devaluation of property, recent credit derogs, etc.
• Other (please specify)

Use the following samples of hardship letters as templates. If you have any questions about your case or how to write a letter that describes your situation please contact me.

Example Hardship Letter 1:

Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.

The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.

(The approximate date of hardship and we believe that our situation is Temporary or will be Permanent.)

Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.

We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.

Sincerely and Respectfully,

Borrower’s Signature
Date
Co-Borrower’s Signature
Date

Example Hardship Letter 2:

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.

The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.

Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.

We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.

Sincerely and Respectfully,

Mr. & Mrs. ___________________
Signature _____________________
Loan # ______________________
Address ______________________
Phone ________________________

If you need any help is constructing your hardship letter please contact me directly. Writing a hardship letter is an important part of preparing your documents for your lender's review. You really want someone to look at your letter before you submit it to your lender.

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