Tuesday May 23, 2017
Look to "The Mortgage Home" for free samples of hardship letters

Hardship Letter Samples

Provided below are 4 free sample hardship letters in PDF form, courtesy - TheMortgageHome.com.

Once you've decided to contact your lender, learning how to write a quality hardship letter may be the single most important part of your loan modification.

There are many different situations which can warrant the need for such a letter & along with our free samples below we hope to give you the best chance at receiving a modification.

Six most common reasons -

  1. You can consolidate your debt by contacting credit card companies or banks and doing a complete restructure of your finances.
  2. A short sale on your house can only be done once you have officially requested it from your mortgage holder.
  3. A loan modification can be a strong reason to write a financial hardship letter.
  4. You may need one to request the insurance company cover the cost of an unusual medical treatment or procedure.
  5. If you're going to request a university or college to reduce their admission fees due to special circumstances.
  6. If you're going to make an appeal to a hospital or medical care provider to reduce their billings for compassionate reasons.

While writing your letter keep in mind that regardless of the situation, some important guidelines should be followed if you want the letter to be taken seriously.

Guidelines for writing your letter -

  1. Problem must be clearly stated - right from the beginning of the letter you'll need to summarize your specific situation has prompted you to write this financial hardship letter. You will be able to give more details on this in the later paragraphs of the letter.
  2. Most important of all, be nice. Avoid playing the blame game when writing your first hardhsip letter, if you're writing this financial hardship letter it's because you are in serious financial trouble and this is more than likely your last resort. Be thankful to whoever you are addressing the letter to in advance for considering your situation.
  3. Do not write more than one page - A letter that wanders for pages will water down your case and you will lose the attention of the reader.
  4. Try to make it a tear jerker - You want to make the letter as personal as possible, grab at the heart of the fellow human being reading this.
  5. Right from the get go - You should state exactly what you are requesting. Make sure to reiterate this request in a slightly different matter at the end of the letter.
  6. Give all the information - your letter should provide enough details so the mortgage lender is able to easily understand your particular situation. Attach documents as needed, these should include bank statements, incomes tax statements, letters and current pay stubs.

Foreclosures can take up to 2 years or more now and the length of time depends on what state you live in. Even foreclosures within the same state will often have different timelines until the actual sale has taken place.

The mortgage lender or bank will often issue the state of claim once you have missed three mortgage payment this will question your ability to repay the mortgage. Once the statement of claim has been served the second phase of the foreclosure has begun.

Many homeowners, especially in today's market are not serious about saving their home. The main reason can be attributtted to many Americans are upside down in their homes by hundreds of thousands of dollars and have no desire to wait decades to get back into the black.

Once a homeowner emotionally detaches themselves from the house and is able to look at their financial situation they soon realize a short sale is often their best way out.

Free samples of how to write a financial hardship letter are included below and something many mortgage companies require you to complete in order to consider you for modification.  This is your chance to appeal, it is not the time to complain about what they have or have not done to make your situation worse.

The hardship letter needs be honest and represent the facts clearly.  It should prove to them that the situation which originally caused you to fall behind on the loan payments was temporary and you are now in a financial position to make your payments on time.

Your also going to need a legitimate excuse for falling behind, such as loss of a job, death in the family, or an illness could be an acceptable reason to temporarily fall behind on your mortgage.

When applying for a loan modification, a short sale or deed-in-lieu one of the documents you will be expected to submit to your lender will be a Letter of Hardship.

When composing the letter, it is important to follow a professional format and not leave out any important details.  Being brief and to the point is equally important though; you don’t want to waste your lender’s time.

Your request can be rejected for all kinds of reasons, but many of them relate to either saying too much in your letter or too little.  Here are several samples of hardship letters which you might submit to your lender.

These free samples are to be used only as a guide.  You should delete all information which is not relevant to your situation, inserting your own details where necessary.

Sample Letter #1 - - - - Click for PDF

(Company's representative)
(Company's Name)
(Company's Address)
(Company's phone number)

RE: (Home Address)

Account Number:(#)

Dear (Ms/Mr. Brown:)

I/We, (Your Name),

are/am requesting that you review my/our financial state of affairs to see if I/we qualify for a loan workout option.

I/We are having problems making my/our monthly payments because of financial troubles created by (pick one):

Death of my spouse
Job layoff
Medical bills
Too much debt
Death of a family member
Business failure
Loss of income
Job relocation
Damage to property
Military service
Payment increase
Other (Please Specify)__________________

This difficulty or situation happened on or about this date MM/DD/YYYY.

I/We believe that my/our situation is (circle one) Temporary / Permanent

The following is a brief account of my/our situation: (explain your situation and tell them why you feel you can now afford your new payments/payments)

I/We, (your name), state the information provided above to be true and correct to the best of my/our knowledge.
Borrower’s Signature


Co-Borrower’s Signature



Sample Letter #2 - - - - Click for PDF

Name: (Your Name)

Address: (Address of Property)

Lender Name: (Lender)

Mortgage #: (Mortgage #)

To Whom It May Concern:

I am writing today to relate to you the financial hardships which have caused me to fall behind on my mortgage payments.  I have done all in my power to pay my mortgage on time, but as you will see from my balance sheet, it has been literally impossible for me to keep up at the present rate.  I request that you work with me to modify the terms of my loan so that I will be able to make my payments on time thereafter.

The reason that I am behind on my mortgage is (explain the reason here as concisely as possible—don’t take pages to do so.  The reason should be critical, i.e. health related, or trouble feeding a family, a lost job, or so on).  I fully intend to pay what I owe on the house, but I have no income through which to do so, as you can see.  I believe this situation to be (temporary or permanent) because of (reasons). 

You can help me by giving me a loan modification.  Please (lower my interest rate, reduce my monthly payments to x amount, etc.).  See below the balance sheet of my monthly income and expenses.  As you can see, if you granted my loan modification request, I would be able to afford my mortgage and never miss a payment again.  Thank you for your consideration.  With your help, I can move on with my life and pay you what I owe.


(Name, signature and date)


Sample Letter #3 - - - Click for PDF

Address: (Address of Property)

Lender Name: (Lender)

Mortgage #: (Mortgage #)

To Whom It May Concern:

I am writing to explain to you my difficulties in paying my mortgage after the recent adjustment of my interest rate on (date).  At the old interest rate of (%), I was having no trouble and as you can see, I have never missed a payment.  I am about to fall behind though, since I am unable to afford the new interest rate.  Please see the attached income and expense sheet to understand my predicament, and how you can help me to resolve it.

I am writing to request that my interest rate be readjusted to an amount I can afford (%), and then fixed permanently at that rate.  This will enable me to pay my mortgage bills in full and on time, and never be late on a payment.  It would be to both our benefits if we could resolve this problem as soon as possible, so that I do not fall behind on what I owe.  It is my highest priority to pay you what I owe.

I am unable to refinance my property because (explain the reasons; i.e. the house is worth less than you originally paid for it).  If you can think of any other possible solutions to my dilemma, I look forward to hearing your proposals.  Please take my suggestion under consideration and adjust my interest rate as requested, or help me to find another way to pay my mortgage.  I have been an excellent borrower and intend to be so until I have purchased my house in full.


(Name, signature and date)


Sample Letter #4 - - - - Click for PDF

Name: (Your Name)

Address: (Address of Property)

Lender Name: (Lender)

Mortgage #: (Mortgage #)

To Whom It May Concern:

I am writing today to describe to you the hardships that my mortgage is causing me.  Because of the adjustable interest rate on the house, I am now paying (x amount) more than I was (x time ago), even though the value of the house has dropped to less than it was when I purchased it.  This has made it impossible for me to refinance, and with my high interest rate, I am now unable to afford basic necessities.  That is why I request you adjust my interest rate to (%).

(Describe your current hardships—i.e. medical bills you cannot pay, days you are going without food, etc.).  Please find attached a balance sheet which shows my income and expenses.  As you can see, paying the current interest rate on my loan is directly pulling money out of my budget for (insert life essential here).

It is my top priority to keep my home, and as you can see, I have been making a valiant effort at paying my full mortgage on time every month.  I have never fallen behind once in (number) years.  At this rate though I will soon have no choice.  I have written you now in hopes that you will adjust my interest rate to (%) which I can afford, so that I will never miss a payment.  It is to my benefit and to yours to do this as soon as possible.  If you have another solution in mind, I await your proposal.

Thank you again for your consideration.


(Name, signature and date)


As you can see, the basic recipe for any hardship letter is about the same.  Describe your problems in reasonable detail, include some basic mathematical figures, and make your request very plain.

Be clear that you’re willing to negotiate, and emphasize the reliability of your past record.  Also point out that the requested action will enable you to continue your payments on time in full.  In other words, make it as obvious to the lender as you can that your request will benefit them.


# Holly Davis 2013-09-24 05:48
Many families are losing their lives and homes due to hardship. I believe that jobs stimulate the economy. Without stable income and [censored]uranc e in employment you will become homeless and collect welfare. Many states have unjust laws that prevent workers from collecting unemployment insurance. Missouri is one state that has a governor that approves laws in this fashion. I know that the Obama Administration has provided HUD with federal funds to help relieve this urgent matter with home loss. My question is why hasn't anything changed? Please let me know what you think about this.

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