HARDSHIP LETTER - Tips, Format, Samples

How to write a hardship letter to mortgage companies.

A Hardship or bank Letter is intended to open up negotiations with your lender and let them know about your current financial problems.

Your lender sees about 300 to 500 of these letters every day.

So, keep it short and simple. It's okay to get a little personal, but don't overdo it. In no more than ONE page include only the information they need to continue the process. Hardship letters are, after all, business letters.


Here's a list of things to include in your letter:

  • Fill up all the identifying information (yours and your loan) up front, so the lender can easily locate your loan. (loan number, borrowers' names, and property address.)
  • Describe your economic hardship and the reasons for it as well as when it started.
  • Explain your situation and propose a workable solution whether it is a short sale, refinancing, workout, deed in lieu... Anything that will allow you to exit the foreclosure, whether you want to keep your home or not.
  • State whether your hardship is permanent or temporary. (If you were laid off for a while but now have regained employment, it is a temporary hardship.)
  • Mention any money you have saved to offset the delinquency or to use it to negotiate a workout plan.
  • Estate the type of workout you want to use to resolve your situation: Loan modification, short sale, repayment plan, forbearance, deed in lieu of foreclosure, etc.
  • Explain any recent changes of your income and expenses and the reason you are no longer able to meet your monthly mortgage obligation. Also, if you expect any more changes to happen in the near future.
  • Offer alternatives as to resolve the situation or how you intend to pay the loan.
  • Write down the best time to contact you and/or your counselor.

Remember: they are interested in helping you get the solution you need so they can get paid.

Deed In Lieu of Foreclosure means you completely surrender the deed to your house instead of going through the foreclosure process.

Sample Letter of Hardship

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DISCLAIMER: The law will vary depending on your state, jurisdiction and specifics of your case. The information provided by DebtProblemSolutions.com is intended for educational purposes only. All the content on this site should NOT be considered professional legal advice or a substitute for professional legal advice. For such services, we recommend getting a free initial consultation by a licensed Attorney in your State.

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