When you’re facing financial difficulties, writing a hardship letter can be a crucial step in securing relief from lenders, creditors, or other financial institutions. This step-by-step guide on how to write a hardship letter will assist you in securing a loan modification, mortgage relief, or debt restructuring during times of financial hardship.
1. Start with a Polite Greeting: Setting the Tone
Address your letter to the appropriate person or department. If you don’t know the specific name, use a general salutation like “Dear Sir/Madam” or “To Whom It May Concern.”
2. Introduce Yourself and State the Purpose
Begin by introducing yourself and explaining the purpose of your letter. Clearly state that you are requesting assistance due to financial hardship. Mention the type of assistance you seek, such as a loan modification or payment deferment.
Example:
“My name is [Your Name], and I am writing to request a loan modification due to a financial hardship I am currently facing.”
3. Explain Your Situation: Be Honest and Specific
Provide a detailed explanation of the circumstances that led to your financial hardship. Be honest and specific, but keep it concise. Include relevant dates and how the hardship has affected your ability to meet your financial obligations.
Example:
“In [Month/Year], I lost my job due to company downsizing, which has significantly impacted my income…”
4. Provide Supporting Documentation
Mention that you are including any relevant documents that support your claim, such as medical bills, termination letters, bank statements, or any other proof of hardship.
Example:
“I have attached copies of my termination letter, recent bank statements, and medical bills to provide evidence of my current financial situation.”
5. Explain Your Plan and Request: Outline Your Next Steps
Describe the steps you are taking to improve your financial situation and how the requested assistance will help you stay on track. Be specific about what you are asking for, whether it’s a temporary reduction in payments, a loan modification, or another form of relief.
Example:
“I am actively seeking new employment and have already scheduled several interviews. A temporary reduction in my mortgage payments would allow me to focus on securing a stable income without the added pressure of foreclosure.”
6. Express Your Commitment: Show Your Dedication
Reassure the lender or creditor that you are committed to fulfilling your financial obligations and that you are seeking this assistance as a temporary solution to get back on track.
Example:
“I am fully committed to resolving this situation and resuming regular payments as soon as my financial situation improves. Your assistance would be invaluable in helping me achieve this goal.”
7. Close with Gratitude: Leave a Positive Impression
End your letter by thanking the recipient for their time and consideration. Express your hope for a positive outcome and provide your contact information for further communication.
Example:
“Thank you for taking the time to consider my request. I sincerely hope that we can work together to find a solution. Please feel free to contact me at [Your Phone Number] or [Your Email Address] if you need any additional information.”
8. Sign the Letter: Ensure Proper Identification
Sign your letter with your full name and, if applicable, your account or loan number to help the recipient quickly identify your case.
Sample Hardship Letter
[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]
Mortgage Lender’s Name
[Name of Financial Institution]
[Address]
[City, State, ZIP Code]
Subject: Request for Loan Modification or Forbearance Due to Financial Hardship
Dear [Lender’s Name],
I hope this letter finds you well. I am writing to inform you of my current financial hardship and to respectfully request your assistance in modifying the terms of my mortgage or granting a temporary forbearance.
Due to MO, I am currently unable to make my regular mortgage payments. I have always strived to meet my financial obligations, but this unexpected situation has made it increasingly difficult to keep up with my mortgage.
I am actively working to improve my financial situation and remain committed to staying in my home. I would greatly appreciate the opportunity to explore options such as a loan modification or forbearance plan. This would allow me the time I need to stabilize my finances and resume regular payments.
I have attached [supporting documents, such as bank statements, medical bills, layoff notice, etc.] that verify my hardship. I am confident that with your assistance, I will be able to get back on track and continue making my mortgage payments as soon as possible.
Thank you for your time and consideration. I look forward to discussing possible solutions and finding a way to resolve this situation. Please feel free to contact me at [your phone number] or via email at [your email address] to further discuss this matter.
Sincerely,
[Your Name]
[Loan Number]
Call to Action:
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