Writing A Hardship Letter After Foreclosure

Once you start to fall behind on your mortgage payments, there is the possibility that you will end up in foreclosure. Indeed, there could be a time when you find no other way but to allow your property to be foreclosed because there was no opportunity for your financial situation to improve at that point in time. However, this does not mean that you will always remain in that situation. There may come a time in which things have picked up again, and you are ready to apply for a new mortgage. Unfortunately, many lenders will likely decline your application upon knowing your foreclosure. However, if you can explain that this was due to real financial hardship, you may find a lender who may approve your application.

Tips in Writing a Hardship Letter After Foreclosure

If you were in genuine hardship, a lender may consider this when deciding whether or not to provide you with a new mortgage. However, you will have to submit significant evidence to prove your situation. Additionally, you must write a proper hardship letter.

A hardship letter is a personal document. You must use it to provide an overview of the situation that you were in, and how this eventually led to your foreclosure. The letter, in this instance, must also prove that your hardship has now ended.

The hardship letter after foreclosure has to be a formal letter. This means that you have to give factual reasons, such as the death of a spouse, involuntary reduction in hours and income, loss of job, relocation, incarceration, divorce, or medical bills, and other past problems. Essentially, you must provide factual details about the personal circumstances that have affected you. At the same time, these should be clear, concise, short, and to the point.

If at all possible, you should keep the letter contained to a single page. It should provide all the important details:

  1. Why you were in difficulty
  2. When the difficulty started
  3. Why you are now no longer in difficulty

It is quite difficult to prove to a lender that your credit history reflects a glitch in your circumstances and is not, therefore, a full picture of who you are today. Indeed, that is why credit files exist. However, this does not mean that it will be impossible for you to get back on the property ladder after some time. Situations resulting to hardship are mostly beyond your control, and lenders do realize that.

Remember that the hardship letter after foreclosure is a formal document. It will be kept on your permanent file as well. Hence, you should write it in a business style, addressed properly, and with your account details in the subject line. Do also make sure that you include photocopies (not originals) of every piece of evidence you supply. The letter should be free from spelling or grammatical errors and it is recommended that a third party proofread it for you. Lastly, send your letter via registered post and do follow up if you have not received a reply within one week.

Hardship Letter After Foreclosure Example

{Your Name}
{Your Address}
{Your Phone #}


To Whom It May Concern:

I am writing this hardship letter to request that the waiting period between conventional mortgage loans be reduced in my case. The foreclosure on my previous house was due to a number of extenuating circumstances beyond my control, and I foresee no such difficulty in my new situation.

I was forced to foreclose on my former residence because of {job loss, illness, family death, be specific}. Because this sudden change caused a devastating {monetary amount} loss to my income, I could no longer pay my mortgage. Foreclosure was the only option for my situation. I have attached {documents} as a testament to my honesty. My financial detriment had nothing to do with overspending or irresponsible purchases.

Since my foreclosure, however, I have regained my credit through {getting a new job, paying off bills, etc. Be specific}. I have attached my last two credit card bills, a copy of my credit report, and last year’s federal income tax return to prove my present situation. I am financially stable and able to easily cover mortgage payments. I would like to take advantage of the current housing climate, but I cannot get a loan for another {number} years.

Please contact me at the aforementioned number at your earliest convenience. I am asking that the loan waiting period be reduced from the traditional 4 to 7 years to {number} years. I look forward to speaking with you regarding this matter.


{Sender Name}

Writing A Hardship Letter For Medical Benefit Extension

When you sign up to a health plan, it will have certain limitations on the types of treatment you can have, how often you can have treatment, and where you can go for that treatment. The result is that sometimes, you may either have to forego on the treatment or pay for it yourself. Both of these situations can cause undue hardship, which can possibly be avoided if you write to your health care insurance company to request for a medical benefit extension.

Tips on Writing a Hardship Letter for Medical Benefit Extension

You must at all times remember that this letter is a formal letter in which you are asking for help. This means that it has to be presented in the right format, be short and to the point, addressed to the right person, and free from grammar and spelling mistakes. The most important thing, however, is that it presents the insurance company with facts. They do not want to hear your life story or how emotionally affected you have been by the lack of therapy or your illness.

Starting the Letter

Start by indicating that you wish to request for a medical benefit extension under your existing health plan. Provide the name of your plan and your policy number. Explain what your plan currently allows in terms of therapy for a certain condition, and ask that an exception be made for you. Specifically, you need to ask for an extension.

Content of the Hardship Letter

State that something has occurred with regards to your medical condition, including the date. This could be an accident, major surgery, or a sudden illness, for instance. Explain how this situation has affected you on a practical basis, particularly if this also has had an impact on your finances. Again, make sure that you include documented evidence to support your statements.

Indicate the name and contact details of your physician and then state that he or she has recommended that you undergo a number of treatment sessions as a form of rehabilitation. If at all possible, you should ask for a letter from your doctor in which it is explained that the proposed therapy could have significant positive benefits for your condition.

Explain that your current health plan does not cover the number of sessions recommended by your physician. State that this means you would have to pay a certain amount towards the treatment yourself. Include copies of income stubs, bank statements, and other bills to further support the fact that you are unable to pay for this treatment out of pocket. Explain that, should you not be able to access the treatment, you will also be unable to work and that this will eventually lead to you needing to file for bankruptcy. Emphasize that this could be avoided if you be granted a medical benefit extension. But do be careful with this. You should not come across as feeling entitled for an extension, nor should you express any anger against your insurance company.

Hardship Letter For Medical Benefit Extension Example

{Your Name}
{Your Address}
{Your Phone #}


Dear {Insurance Representative}:

I am writing with regards to the benefits offered by my health plan, {plan and policy number}. My health plan currently only allows {maximum number} therapy sessions for {condition}, and I would like to request an extension of these benefits.

On {date}, I had {an accident/major surgery/injury}. The result was that {I can no longer work/I’m unable to move/I have to walk with a cane, etc.}. Aside from these restrictions, I also {list of debilitating or painful symptoms}. My doctor has recommended {number} {therapy type} sessions to rehabilitate and heal. It is {his/her} professional opinion that with this therapy, I could {positive projected result}. Enclosed is {his/her} statement.

Unfortunately, my health plan only covers {number} therapy sessions, meaning that I will be forced to pay {amount} out of pocket. Enclosed are my bank statements and income stubs to prove that I will be unable to meet these expenses, and therefore unable to continue therapy. If that is the case, I will be forced to {file for bankruptcy, go on disability, quit my job, etc.}. I am trying to avoid such extreme circumstances, and as such I am requesting an extension of my benefits to {benefits required}.

I hope that we can reach an agreement, as this therapy is medically necessary for me to continue as a functioning member of society. Thank you for your time and consideration.


{Sender Name}

Writing A Hardship Fund Application Letter

There are numerous situations in which you may need to write a hardship letter. Depending on your situation and which fund you are writing to, the things that have to be included in the letter will vary substantially. In the vast majority of cases, the letter is designed to appeal for funds to pay for an unexpected expense, such as a funeral, or to ask a creditor for an extension on costs. Either way, there are a number of key things that you have to include in your hardship letter.

How to Write a Hardship Fund Application Letter

The key thing to remember is that you need to be open and honest about your situation. If you have waited for a very long time with writing your letter, particularly if it is in relation to a loan or a mortgage, you also have to outline why you did not consider communicating with your creditor sooner. The letter should not be one in which you beg, but rather one in which you explain what is wrong, why you need help, how long you will need help, and what you aim to do in order to get back on track.

Checklist of Requirements

There are a few things that you have to remember to include in your hardship letter. It doesn’t matter whom you are writing it to. There are a number of criteria that you have to meet. Usually, you also have to follow a specific format. Hence, find out those requirements first. Your letter should, at the very least, include:

  • Your personal details
  • The date it was written
  • Your case or customer number, if you have one
  • The type of hardship request you want to make
  • Why you are in hardship
  • How you have tried avoiding being in hardship, and why this was unsuccessful
  • How you intend to improve your situation
  • Your gratefulness for the consideration given to you
  • Details of any documents that you have included to support your letter

Overall, your letter should be just one page long. Make sure that you ask someone to proofread it for you. You have to make sure that there are no mistakes in the letter.

When Can You Not Write a Hardship Letter

Hardship describes a situation in which you are truly not able to meet certain responsibilities due to situations beyond your control. You are not, for instance, in hardship if you spent your savings on a five star all inclusive vacation and then found that your mortgage monthly amortization cannot be paid. If you have voluntarily left your job or reduced your hours, if you chose not to have certain forms of common insurance in place, or if you are unwilling to remove certain unnecessary expenses from your budget, then it is unlikely that you will be accepted for a hardship grant.

Nobody wants to be in a situation where they need to write a hardship letter. However, certain situations do happen and it is important to know that help is out there for you. Writing a letter is not overly complicated if you follow the tips provided above.

Hardship Fund Application Letter Example

{Phone #}


Dear {Hardship Fund board/administrator}:

I would like to apply for financial relief under the {name of hardship fund}. As an {employee/union member}, I realize the {strike/work stoppage/temporary layoff} was necessary. However, our family just doesn’t have the financial cushion to weather the time without a paycheck.

Our savings and monetary resources are limited due to {reason}. Therefore, we can only go without salary for {time period} before {we face eviction/utilities are shut off/etc.}. A grant of just {amount} would be enough to stave off disaster.

Thank you for considering offering relief. The generosity of {donors/union members/etc.} is much appreciated.


{Sender Name}

Writing A Hardship Letter Keep House

When you buy a home, you do so with the intention of staying there for a long time. Nobody wants to start a mortgage expecting it to go into foreclosure at some point. However, there are situations beyond your control that may push you towards that. If that has happened to you, and you want to keep your house, one option is to write a hardship letter to your mortgage provider.

Basic Tips in Writing a Hardship Letter to Keep House

This letter is a formal letter that must be written to the right person, in the right department. It is also highly likely that your mortgage lender has a standard form that you must complete. Hence, it is advisable to contact your lender first to ask for this form, and to find out to whom you should write to.

As a formal letter, it should be properly formatted, dated, and free from spelling and grammar mistakes. It should also hold your account number in the subject line, as well as other identifying information so the lender can confirm who you are.

Content of the Hardship Letter

Your letter should make it clear that you want to keep your house. A lot of people who experience hardship are in the process of selling their property and therefore simply want an extension of payments. Others want to request approval of a short sale. It is vital, therefore, that you start your letter by stating that you are experiencing hardship, but that you want to remain in your home.

State how important your property is to you and your family. Give a brief description of your family makeup and how you would be affected if you and your family were forced to leave the property. State that your home is at the heart of your family, educational, social, professional, and spiritual lives. Write that you would like to come up with a loan modification or forbearance plan that will enable you to keep your property.

Explain what has forced you to become delinquent in your payments and make sure that you include documented evidence for that. Examples may include losing your job, the death of a relative, incarceration of the breadwinner, a sudden illness or disability, and other such situations. All of these are situations that are beyond your control, but have caused you significant financial hardship.

Next, you must propose a solution that you believe to be mutually beneficial for you and the lender. Loan modifications of this kind tend to be temporary only. For instance, state how long you will be able to making reduced payments, and in what amount. Also explain how you intend to repay the amount that you will have missed as a result of this modification. Do not make any promises that you cannot keep, however. It is better to only offer $5 a month and pay that, than to offer $500 and not be able to make the payment. After all, your lender is only likely to give you such a chance once.

Hardship Letter Keep House Example

{Your Name}
{Your Address}
{Your Phone #}
{Your Loan #}


To Whom It May Concern:

I am writing to you today concerning my mortgage foreclosure. This home is extremely important to me and my family, as it is in the center of our professional, social, educational, and devotional lives. I would like to work out a forbearance plan or loan modification that would allow me to keep the house.

My inability to pay the mortgage on my house has arisen from {specific and detailed situation. Family problems, medical emergencies, death, loss of income/job, etc. Attach documents as necessary to prove financial hardship}.

I would like to propose a temporary loan modification plan. With my savings of {amount} I can make a reduced payment of {amount} from now until {date}, when I shall hopefully {resolution of aforementioned problems}. At that time I would resume paying the previous amount of {amount}. I hope that I have made it clear how necessary my home is to both me and my {members of family}. It is critical to our daily lives in {specific ways} and we cannot afford to lose it at this time.

Thank you for your time and consideration.


{Sender Name}

Writing A Hardship Letter For When Insurance Denied Coverage

There are various reasons as to why an insurance company may deny coverage. Whatever those reasons are, however, the impact can be significant for an individual. This denial often becomes a cause for new hardship, particularly in cases of medical bills. There usually is no opportunity to decide whether or not to have treatment before speaking to an insurance company, which means you could be left with significant bills to pay. If this is the case, you may want to consider writing a hardship letter to appeal the decision.

Basics of Writing a Hardship Letter for When Insurance Denied Coverage

This type of letter is a formal letter and should be treated as such. It should be properly formatted, therefore, and addressed to the right person in the right department. Contact the insurance company to determine to whom you should write to if you’re not sure. The letter should be short and to the point, preferably fitting on a single page. It should also be proofread, so that it does not contain any grammatical or spelling errors.

Starting the Letter

Your first paragraph should explain what has happened. For instance, you may have had an operation. Indicate the date when this occurred and why it was needed. You should then specify when you were told and by whom that your request for insurance coverage was declined. You should, at the point, have been given a reason, which usually is that the company does not feel the treatment was “medically necessary”. Whatever the reason that was given to you, include that in the letter as well.

Content of the Hardship Letter

You should then explain that you wish for the case to be reconsidered and why. For instance, you may have been in hardship which stopped you from seeking medical treatment in any other way. Alternatively, you may have additional evidence that demonstrates that the treatment was necessary, in which case you should also explain what the consequences would have been should you not have accessed the treatment. It is also possible that the denial of coverage now causes you financial hardship. Whatever it is, you must provide documented evidence and facts for all your statements.

There is one exception to this matter. If you feel the decision is completely wrong, then you can appeal it. However, that is different from writing a hardship letter, which essentially states that the decision made by the company is correct, but you would like them to make an exception in your particular case. If you want to appeal a decision, you are likely to have to follow different policies and procedures. Your insurance company should be able to provide you with details on what those steps are and how to get the ball rolling.

Ending the Letter

End your letter by respectfully requesting that the insurance company reevaluate your case. Unfortunately, the insurance company has no obligation to actually do so. Hence, you do have to make sure that you write your letter in a respectful manner and one that does not accuse the insurance company of anything.

Hardship Letter For When Insurance Denied Coverage Example

{Your Name}
{Your Address}
{Your Phone #}
{Your Account #}


To Whom It May Concern:

On {date}, I required {brief but specific description of medical transportation, operation, etc.} due to {medical emergency}. I was notified on {date} from {insurance company representative} that my request to have {percentage} of the cost covered by my insurance was denied because the {operation/transportation/etc.} was not medically necessary.

I request reconsideration in this case. Due to {hardship}, I was unable to seek out {medical alternative}. This {action} was my only option and therefore was completely medically necessary. If I had not sought out this action, I would have {medical consequence}.

In light of these circumstances, I respectfully ask for a reevaluation of my case. I have attached {a doctor’s note, medical records, financial stubs, etc.} to substantiate my claim. Thank you for your consideration.

Thank you,

{Sender Name}