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.

A 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.

This hardship letter sample must be very detailed and describe your hardships, living situation, divorce, job loss, unexpected medical bills 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.

HARDSHIP LETTER SAMPLE - Tips, Format, Example

How to write a hardship letter sample 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.)
  • 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.
  • 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.
  • 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.


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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Hardship Letter Sample
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