How To Write A Hardship Letter

Writing a hardship letter to your mortgage lender may be the only chance you have to save your home from foreclosure. You must have a valid hardship to qualify for any type of loss mitigation. A hardship letter is a detailed explanation of a hardship in your life that has caused you to fall behind in your financial obligation to your mortgage lender. In your letter, outline the specific details of your reason for default along with supporting documentation. Your hardship must be temporary and you must now be in a position to begin making payments on your mortgage.

Important information you will need to write a hardship letter include:

• Date
• Loan Number
• Reason for Default – Hardship
• Supporting Documentation
• Detailed events
• Dates of Events
• Your proposed outcome – what you would like to happen
• Documents supporting end of hardship

Some valid reasons for hardship that will be accepted in a hardship letter include:

• Death of Borrower
• Death of spouse or family member
• Unemployment
• Decrease in working hours
• Elimination of overtime or second job
• Involuntary job relocation
• Increase of expenses due to short term unemployment
• Mandatory pay reduction
• Decline in earnings for self employment
• Failure of business
• Short term or permanent disability
• Increase in expenses due to illness
• Divorce
• Incarceration

Keep your letter detailed and to the point.

Next Hardship Article:  What is a Short Sale?

Do you need to modify your existing home loan? Then download our loan modification sample letter. You won't find a better example, free or paid, anywhere else online.