Sample Hardship Letter

A sample hardship letter to a bank, mortgage company or financial entity is used to explain why an individual is not currently able to make the loan payments.

If you have difficulty meeting your financial obligations due to job loss, income reduction, medical emergency or any other economic downturn, you may consider writing a letter to your creditors explaining your financial distress and asking for their help and assistance.

This letter must be very detailed and describe your hardships, living situation, job loss, divorce, unexpected medical problems and financial losses.

The downturn of the economy has increased the number of homeowners who are desperately seeking any type of help with their finances. Even a small reduction on payments can make a big difference nowadays.

Below you'll find a sample hardship letter that may be used as a guide. Don't forget to get them emotionally involved by your particular financial situation and economic distress.

________________________, ____ of _____________ of 20___.

(Lender Name)
(Lender Address)
(Lender's fax number)

RE: Hardship Letter - Short Sale for (your address)

Dear Creditor:

I am writing this letter to explain my current financial situation.

Due to (laid off, slow business activity, unexpected medical emergency) I am struggling to pay my bills and have fallen behind on my car, electric, phone and mortgage payments on the property located at ( your address),

My home was purchased in (month) of (year) but since then I have suffered with the slow down on the economy and the current real estate crisis in America. It has become increasingly difficult to keep my financial obligations and sustain a home mortgage that now is ($) per month.

Since I (lost my job, got into an accident, car broke down,...) my financial situation is at the point that I can barely make ends meet to put food on the table for my children.

I have been trying to sell the house through ads in the paper and several people have showed up and demonstrated interest in purchasing it. Unfortunately they have offered lower than expected due to some work needed in the property.

I ask that you please accept the amount of ($) offered on a Short Sale as it is the best offer I’ve had received. I deeply appreciate if you could work with my buyer who is willing to pay more than anyone else for the property in its current condition, so I can settle my debt with you.

Enclosed please find receipts and documents (late notices on my car, my bank statements from the past three months, last year's tax returns,) and anything else I can find that shows the financial trouble I am going through.

I am deeply disappointed and humiliated to be in this situation and would like to avoid the further embarrassment of a negative credit connotation of foreclosure.

If you have any questions, please contact me at (your phone # with area code.)

I, (your name), state that the information provided above is true and correct to the best of my knowledge.


(Home Owner Name)
(Account number)

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DISCLAIMER: The law will vary depending on your state, jurisdiction and specifics of your case. The information provided by 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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