Use these sample hardship letters as templates for your formal hardship letter.
When you have fallen behind on your mortgage payments are are attempting to have your bank or lender work with you to reduce or delay your payments, you will be asked to provide some documentation to prove that you are experiencing difficulties. One of the most important parts of this documentation is the Hardship Letter.
This is a personal letter written by you to your lender. It is meant to describe the circumstances behind your failure to pay your mortgage and to give the lender an idea of how long these circumstances will affect your ability to repay the loan. A Hardship Letter should be formal, but should also include personal reasons for why you have been unable to make your payments on time.
Some of these reasons may include the death of a co-borrower, loss of job or reduced income, divorce, incarceration, a relocation due to a job, medical bills, and others that affect your ability to pay. While this letter will include personal matters that may be complicated, it is important that you keep it short, concise, and clear. Below are samples of a hardship letter. Since it is a formal document and will become part of the borrower’s and lender’s permanent file, it should be written in formal business style and sent by certified mail. The letter should be succinct and not more than one page. The borrower should keep a copy of the letter as well as the receipt that proves the lender received it.
Sample 1 - Hardship Letter Name of Borrower Address of Borrower City, State, Zip Code Loan Number
Name of Lender Address of Lender City, State, Zip Code
RE: Requesting short sale because of financial hardship
Name of Lender:
This letter is a formal request to short sell my house because of financial hardship. I have not been able to make my mortgage payments for the past six months because the company I was working for, Name of Company, downsized, and my position was eliminated. I found another job, but the salary is a third of my previous salary. If I can short sell my house, I can avoid foreclosure.
I would like to fulfill my financial obligations, but it has not been possible for the past six months, and a short sale seems to be the only solution. I also believe that a short sale is in your best interest, because the house is in good condition and you could sell it for market value rather than waiting for foreclosure and trying to sell a vacant house.
Thank you for considering my request. I am ready to cooperate with any instructions you may have. I can be reached at Phone Number or Email Address.
Signature of Borrower Printed Name of Borrower List of Enclosures
Sample 2 - Hardship Letter Name of Borrower Address of Borrower City, State, Zip Code
Name of Loan Officer Name of Lending Institution Address of Lending Institution City, State, Zip Code
RE: Requesting loan modification because of financial hardship
Dear Name of Loan Officer:
This letter is a formal request for modification of my mortgage. I have fallen behind in payments for the last three months because my wife, Name of Wife, lost her job, which reduced our total income by half. I made the last payment on DATE.
I sincerely want to keep my home and make regular payments, but, at this time, require some modification in the terms of the loan. I request that the monthly payments be reduced and the delinquent payments be forgiven or recapitalized, so I can catch up and prevent delinquency in the future.
I would appreciate it if we could work together to find a way to normalize my mortgage payments. I fully intend to pay my debt, but need some help until my wife finds another job and our financial situation stabilizes again. She currently has two possible job offers, and will know the results next month.
I apologize for getting behind in my payments, but, as you can see, it was out of my control.
I can be reached at Phone Number or at Email Address if you have any further questions. I hope we can meet soon to agree on the terms of a loan modification.
Sincerely, Signature of Borrower Printed name of Borrower
I am writing this letter to you to explain the circumstances behind my inability to make timely payments on my loan. I have taken every step to stay current on my payments, but I have experienced some personal setbacks recently that have made this impossible. (Here, you will briefly explain the life events that have occurred that have kept you from making payments.)
Because of these events, I have fallen further and further behind on my payments. Currently, I am unable to make payments. I have tried everything I can, and now I am turning to you for help.
It is my goal to keep my home, and I will do everything that I can to make this happen. I would be very grateful if you would consider working with me to ensure that I do not lose my home. It is my intention to fully repay my home.
I believe that after a time period of (give an estimate of how long you think your current circumstances will affect your ability to make your mortgage payments), I will regain my ability to make timely payments. (If you believe your circumstances are permanent, be honest about this and state this in a concise, clear way.)
At this time, I am asking that you lower our delinquent amount owed, our monthly payment, or both. I am committed to paying off our loan in full, and I believe this kind of amendment would be beneficial to both you, the lender, and me.
Thank you for your consideration in this matter. I look forward to working with you so that this matter can be settled and put behind us.
Sincerely, Your signature Date (Co-borrower's signature and date, if applicable) By Andre Bradley