Writing a Hardship Letter Principal Reduction

If you want your mortgage to be modified, one of the ways of achieving this is by writing a hardship letter principal reduction. It is vital that you write this in the correct format and that it includes everything that a lender is looking for. Let’s take a look at the key elements of this kind of letter.

1. The Start of the Letter

Before you write your letter, you need to speak to your lender to find out to whom you need to write to. Make sure that you spell names correctly and do also ask for an extension number so you can ring them for a follow up. The first line of your letter should be the lender’s name, followed by the address details. Then date the letter and write the name of the person you are sending the letter to under that. After that, you include the RE: line, which references what you are writing about. This is where you should put your loan number.

2. The Body of the Letter

It may be tempting to put lots of information in here, but it is more important to just present the facts. Simply state that you are asking for a principal reduction because a loved one has died, you have suffered an illness, you have lost a job, or any other reason. You should also state that you have done everything possible, such as decrease your expenses and search for part time work, to ameliorate the situation, but you are now experiencing a financial difficulty.

Make sure that you make it very clear that you want to keep the home, if you do. If you do not state this, the lender may simply help you sell your property instead. Hence, you need to come up with solutions. For instance, you can request a balance reduction, a lower adjustable rate, or anything else that can help you get back on track.

If you have already gone through the Home Affordable Modification Program, make sure to inform your lender about this as well. Tell them everything that you have done so far to fix the problem. For instance, you can tell them that you have sought legal advice (include contact details), have tried to refinance, or have searched for a new job.

3. Ending the Letter

You need to end the letter formally, making it clear that you are eagerly awaiting their response, thank them for their consideration, and request an acknowledgment of the receipt of your letter. If you have added any documented evidence, such as pay slips or medical bills, list those underneath your signature. Always proofread the letter, preferably asking someone else to do it for you or, if that’s not possible, re-reading it the next day with a fresh pair of eyes. Always make sure that you keep a photocopy of the letter and its attachments, and that you send it through registered post. After around one week, call the lender by phone for a follow up and to check if they have received your letter if you have not had any confirmation.

Writing A Hardship Letter To Insurance For Elective Surgery

All health insurance policies are clear on which types of surgery are covered and which are not. Those things that are classified as “elective surgery”, which means that they are optional rather than being life saving, are almost never covered by insurance companies. However, that does not mean that you might not be able to convince your insurance company to reconsider. This is particularly true if you believe that not having the surgery will cause significant financial hardship.

Guidelines for Writing a Hardship Letter to Insurance for Elective Surgery

This letter must be a formal one that is written in a professional style. It should be dated and addressed to the correct person. The subject line should indicate the reason for writing, and it should also show your policy number. The letter should also include other identifying information from yourself.

Starting the Letter

Your first paragraph should outline that you would like to request some leniency with regards to the policy. Specifically, you are requesting a modification of how the insurance company views the operation that you want to undergo. Explain that it is classed as “elective” according to their policies and procedures. However, you feel that the said operation is not elective but rather a necessity. For instance, if you do not have the surgery, you will be left unable to properly look after your family, have a significantly reduced quality of life, and/or become too sick to continue with your work.

Content of the Hardship Letter

Go on to explain that you understand why this particular procedure is usually classed as elective, stating that most people have it for non-medical reasons. State that your situation is different, however, because you have been suffering from a certain illness or condition for a certain amount of time (include the dates), and that you have tried all other types of available treatment (list them and when you had them). Explain that you believe that this particular operation will be your last chance at living a normal, comfortable life. State that you know the surgery is not guaranteed to be successful, but that not having the procedure will guarantee that you will have a poor quality of life.

These situations are highly emotive in nature. You are likely to feel quite desperate and to see the procedure as a last resort. Yet, it is vital that you remain factual at all times and don’t delve into feelings. It is far more poignant to have a statement from a physician who says that the surgery will greatly improve your quality of life, than for you to tell them that you feel depressed and worthless because of your condition.

Ending the Letter

Make sure that you can provide evidence for anything that you state in your letter. Include hospital appointment cards, medical notes, and doctors’ statements, for instance. Do also provide proof of the surgery having been successfully with other people in the same situation as you, even if that is abroad. Finally, make sure that you have appropriate costings for the procedures included in your letter as well.

Hardship Letter To Insurance For Elective Surgery Example

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


To Whom It May Concern:

I am writing this letter to request leniency concerning my insurance policy’s approach to {medical operation}. It is listed as an “elective surgery” and therefore not permissible for coverage according to my current policy. However, if I do not get this operation, I will be {too sick to work/in horrible pain/disabled/unable to care for my family, etc.}

{Medical operation} is considered an elective surgery most of the time because it is mostly used for {reason}. I have been sick for {amount of time} with {illness/injury} and I have already tried {alternative one} and {alternative two}. {Medical operation} is my last chance at {recovery option}. Although it is not a guarantee of success, it has a higher chance of helping my condition than anything else available to me. If it is not covered by my insurance, then {brief description of repercussions}.

I am attaching a doctor’s note outlining my situation and the important nature of this surgery in my particular case. Thank you for your consideration and understanding.

Thank you,

{Sender Name}

Writing A Property Tax Hardship Letter

If you are experiencing financial hardship, which means your finances are affected by something that is beyond your control, you may be able to get some relief by writing to a government agency to ask for some relief on your property taxes. It should be noted, however, that even if your request is accepted because you can genuinely prove your hardship, your debt will not be forgiven. Rather, you will be offered some sort of deferral instead.

Possible Reasons to Allow a Property Tax Deferral

There are some legitimate reasons that are generally accepted for property tax deferral. These include unemployment, activated military personnel, a death in the family, sudden illness or disability, failed business, and separation or divorce. However, it all depends on the state, so you should find out the rules that apply to you specifically before writing your letter. It is also common that there are some special programs for certain demographics such as the elderly and disabled, as well as for other groups of people. Most states offer these programs to:

  1. Those who have owned their property for at least five years
  2. Those who run a nonprofit organization but still have to pay state taxes. If their property is now used for things that state legislature renders exempt, they may apply as well.
  3. Widows and widowers of military veterans with low income
  4. Those over the age of 60
  5. People with a disability that forced them into early retirement because they are no longer able to work.
  6. A natural disaster that has affected an entire geographical area
  7. Long-term occupants
  8. Veterans returning from active duty

How to Write a Property Tax Hardship Letter

When you write your letter, one of the most important things to do is to include all documented evidence for your hardship. Your federal income tax statements, copies of outstanding debts, payslips, and other such documents should all be included. Keep the letter short and to the point, and present only the facts.

If you are granted an exemption on your property taxes, you will have to pay them the following year. Hence, you need to start preparing for this, as you will effectively have a double bill. One way to do this is to speak to your mortgage provider and create an escrow. This means that you pay a little bit more every month, and this money is then held in an account for you in order to pay your taxes. For many, this is a great way to prevent having to pay a large, unmanageable sum at the end of the year. Hence, you may also need to write a letter to your lender in order to explain your situation. However, that should be done after you have heard from the tax office.

Meanwhile, remember that a hardship letter is a formal document. It should be properly written and addressed to the right person. Keep it short and to the point, with references to the pieces of evidence that you supply. Try to avoid becoming emotional, as the tax office is interested in facts, not in feelings.

A Property Tax Hardship Letter Example

{Phone #}


Dear {assessor}:

I am positive that my assessment of {amount} is in error.

I would like to request a review. The parcel number is {number}.

If the amount is based on the property description listed on the Assessor’s Office website, that explains the error. Rather than {square footage/bedrooms/etc.} listed, in actuality {the garage has been torn down/there is only one bathroom/the room sizes are off}.

Here’s a list of other discrepancies between your report and the reality of my property:




As a layperson, I looked at the market value of similar homes and used {source} to calculate the reduced value of the property. Based on this, I believe I owe closer to {amount}.

Attached, please find {appraisal report from my recent refinance attempt} as well as {a letter from my real estate agent listing major repairs I’d need to undertake to make the home sellable}.

Paying {assessed amount} would create a severe hardship to my family. I look forward to the review and a revised bill.


{Sender Name}

Writing A Financial Hardship Letter Due To Medical Bills

Medical bills tend to be substantial bills and if you incur a sudden expensive illness or a major accident, they can mount up very quickly. You may need multiple, lengthy treatments and your insurance may not cover all of those expenses. A lot of people don’t realize that credit card debt and medical debt are quite similar. Namely, they are both unsecured, which means they can both be negotiated. One way to get the ball rolling, is by writing a hardship letter.

Tips for Writing a Financial Hardship Letter Due to Medical Bills

The healthcare industry is very inflexible in terms of collecting on medical bills. However, this does not mean that you have to pay more than you can, nor do you have to take out a loan. Doing so will only make your situation worse.

First of all, therefore, you should determine whether the debt is actually correct. It is quite possible that there has been an error in your medical bill, particularly when you consider that studies have shown that up to 80% of them do indeed have some sort of error. Hence, make sure to look over the bill and ask a trusted person to do the same. You can find online help on how to read your bill as well.

Once you have determined the amount you actually owe, you need to negotiate with the medical institution to see if a repayment plan can be created. You should not have to put yourself in greater financial difficulty just to pay for your bill. This is because, if you do this, you may not be able to receive Medicaid later on in life. What you need to do is immediately tell the creditor that you cannot pay. Debt used to be referred to collection agencies after 150 days, but this is now usually between 60 and 90 days, so make sure you do things quickly. Consider that collection agencies may sue you for as little as $100, and you will see how important it is to take action now.

Make sure you keep documented evidence of everything that you do. Hence, do not speak to the medical provider – or a debt collection agency – over the telephone, but do everything in writing. You should also make payments each month on the bill that you can afford, even if an agreement has not yet been reached. This shows willingness on your part.

Some important tips for your hardship letter:

  1. Keep the letter short and to the point. Try to stick to a single page.
  2. Include a financial statement that shows your income and expenses.
  3. Always be polite and courteous. After all, you are asking for help.
  4. Explain that you are in hardship and why, and how that is linked to the medical condition in question.
  5. Offer a repayment plan that you can afford, stating when you will make the payment, how, and for how long.
  6. Address it to an actual individual, which gives it a personal touch.

If your repayment offer is accepted, make sure that you receive a confirmation for that in writing.

Financial Hardship Letter Due To Medical Bills Example

{Your Name}
{Your Address}
{Your Phone Number}

{Hospital/Clinic/Doctor Name}
{Phone Number}
ATTN: {contact person}


RE: {consolidation/restructuring/forgiveness} of debt on medical bills for {Name}, account {number}

To Whom It May Concern:

My name is {Name}, and I was a patient at {hospital/clinic/doctor’s office} on {date}, where I received {a specific procedure, treatment, etc.}. {Indicate what your insurance covered of this procedure, or note that you did not have insurance at the time}.

I have been on a payment plan that has me paying {amount in dollars} per month. But I have unfortunately run into significant troubles in my life, which have made it impossible for me to continue to keep up with this payment plan. Due to {death in the family, loss of a job, other medical problems, etc.}, I am dealing with making constant decisions about which of my many bills is most important each month.

I have attached {relevant financial documents} to this letter, so that you can see that my monthly income is only {amount in dollars}, all of which must go to {mortgage, rent, other payments}, leaving very little left for the amount I owe you.

{Indicate how much you can pay each month, or indicate that you would like to have your debt forgiven due to this hardship} . I hope that we can work out a plan that will work for both parties.

Please contact me as soon as possible so that we can begin this process.


{Sender Name}

Writing An Unemployment Benefits Denial Appeal Letter

The job market today still has some problems and there are some claims for unemployment compensation. However, when people apply to receive this type of benefit, their request may be denied for some reason. Indeed, employers are within their rights to deny or dispute any claim, and there are various reasons as to why a claim may be disallowed in its entirety. You have to meet some very stringent rules and regulations and those are not always in your favor. There could be loopholes, however, and it is also possible that a mistake was made in denying your claim. Hence, if you feel that you do deserve compensation, then you should appeal the decision. Below are the steps to follow in writing an unemployment benefits denial appeal letter.

1. Have Your Paperwork in Order

You must write an appeal letter to start the process. Winning a case on appeal is quite common, particularly if you are able to demonstrate that some information has been overlooked, or if new information is available. The appeal letter itself is a formality, but it is an important one. It must be properly addressed to the right agency and department. It is usual that there are several divisions within an agency, so addressing it to the correct place is essential to have your appeal considered as soon as possible. There may also be an appeal form that you have to complete. If so, add it to your letter, rather than using it to replace your letter in full.

2. Write a Professional Letter

Officials will closely scrutinize the letter that you have written. Hence, it should be professional and you should make sure that there are no spelling and grammar mistakes. What you need to aim for is effective communication that encourages officials to consider your story.

Make sure that you start your letter by indicating the case number and why your claim had been denied. Then immediately follow with explanation as to why you believe this to be unfair or incorrect. If you have any evidence to prove your point, include this in your letter of appeal as well. Any evidence that you have of unfair treatment by your employer or of false allegations must be added to your letter as documented attachments.

3. Get Your Witnesses Together

Last but not least, if you make any claims that have been witnessed by others, or if you have witnesses to prove that the claims made against you are untrue, this has to be added as well. Their names and contact details should be included in your letter. This is important information that will usually grant you at least the right to have your case looked at once more.

You do have to be careful not to make your letter too long. The recommendation of experts is to stick to no more than two paragraphs: one explains the original situation and other explains the new evidence. Do not expect that those who will read the letter will be able to absorb everything if you make the letter longer than that.

Unemployment Benefits Denial Appeal Letter Example

Writing A Hardship Letter For Deed In Lieu Of Foreclosure

If you are facing foreclosure and you want to avoid it through a deed in lieu of foreclosure, then you will need to write a hardship letter. A deed in lieu is a form of loss mitigation, which usually means completing a standard hardship affidavit, although separate letters may also be required. As part of this process, you will usually also have to provide information such as bank statements, financial statements, tax returns, and pay stubs. Put together, these can demonstrate your hardship.

Defining Hardship

You are considered as experiencing hardship if things happen over which you have no control, and that lead to you being unable to make your mortgage payments. There are a number of situations in which a deed in lieu of foreclosure may be considered to resolve hardship, such as:

  1. An involuntary decline in income or job loss
  2. Illness of a family member of the homeowner
  3. Separation or divorce
  4. Medical expenses
  5. Military service
  6. A reset of the adjustable interest rate
  7. A natural disaster

What to Include in a Hardship Letter for Deed in Lieu of Foreclosure

A lot of people write their hardship letter without really thinking about what to include in it. Worse still, some people simply copy an online template word for word. Remember that there are hundreds of people writing these letters on a daily basis, so you need to write something that stands out. Templates should only be used as a guide. Rather, you need to focus on providing information that is pertinent and personal to you and your situation. At the same time, you have to make sure that you don’t turn the letter into a sob story. The lender wants to hear the facts, and you should try to present those facts on a single page.

A hardship letter is designed to explain why you are in a certain situation and that you would be able to avoid foreclosure with their help. You must make your wishes clear, such as receiving the deed in lieu of foreclosure, before you move into an explanation of your hardship. This ensures that a mortgage expert reads the rest with the understanding of where you are going.

Make sure, as well, that your letter makes it clear that you are not trying to shirk from your financial obligations. Rather, you should state that you want to make certain payments until you have been able to rectify your situation. Be realistic in this and do not make promises that you are not sure you will be able to keep. Promising just $10 a month is better than promising $100 and then not making the payment.

Nobody wants to be in a situation of hardship. Your lender understands that and taking foreclosure action is something that they will want to avoid as much as you do. Hence, if you are honest, present them with facts, and show you are willing to work at the situation, you might be able to get some leniency and receive a deed in lieu of foreclosure arrangement.

Hardship Letter For Deed In Lieu Of Foreclosure Example

{Your Name}
{Your Address}
{Address Continued}
{Your Phone Number}

{Mortgage Company Name}
ATTN: {appropriate department}
{Address Continued}


RE: deed in lieu of foreclosure on {address}

To Whom It May Concern:

I am writing to begin the process of offering the deed to my home, in lieu of foreclosure.

I have missed {number} payments on my mortgage with your company, due to significant financial hardship in my life. The hardship was caused by {detail the reasons you’re struggling to make the payments; be specific and emotional}.

The home has been on the market for {length of time}, and in that time the asking price has been reduced from {amount in dollars} to {amount in dollars}. I do not have a buyer willing to purchase the home, despite my best efforts to find one, so a short sale is not an option.

I believe I will be unsuccessful in my attempts to sell this home, nor will I be able to make the mortgage payments. Rather than deal with the foreclosure process, I would like to give you the deed to my home, in exchange for forgiveness on the loan. I do not have a second mortgage, and there are no other liens on the property.

I have attached all relevant documents for the house and for my current economic situation.

Please contact me as soon as possible so that we may begin this process.


{Sender Name}

Writing A Hardship Letter To Hospital

If you needed to have medical treatment in a hospital, then you may be faced with a substantial bill. Even if you have a good health insurance, it is possible that they don’t cover the bill in full. Indeed, this is how many people end up in significant debt. If that has happened to you, you should not automatically look at selling your possessions or taking out a loan to pay for your medical bill. Rather, you should consider writing to the hospital to ask for some leniency.

Guidelines for Writing a Hardship Letter to Hospital

Your letter should be written formally. This means that you address it to the right department and preferably to the actual person who will be dealing with your case. The letter should also be dated, and it should be free from grammatical and spelling errors. You should also make sure that it includes your account or hospital number, and other identifying information about yourself.

Starting the Letter

Start your letter by explaining what you are asking for. This may be debt forgiveness, restructuring, or consolidation. Go on to explain which medical facility you attended, which procedure or treatment you received, and why it was necessary. State that your insurance company agreed to cover a certain amount of that bill (indicate how much), leaving a certain balance. Again, indicate how much. If you did not have insurance at all at the time, make sure to indicate that as well.

Content of the Hardship Letter

You should then offer your suggestion. If you wish to have the debt forgiven in full, explain why you feel this to be necessary. Most of the time, however, you will ask for some sort of payment plan to be considered instead. Hence, offer a certain amount each month, stating when and how you will pay this. Make sure that you can actually afford this amount, as you should never make promises that you can’t keep.

It is likely that you had already been paying a certain amount, but you now find yourself in a situation in which you can no longer afford this. If that is the case, you must indicate what hardship you are currently experiencing. It is important to be factual here. The hospital is not interested in a sob story or in an emotional account. Rather, they want to know why the payment for the bill will not be received at the specified date.

You must offer evidence for everything that you state. Hence, include copies of your medical bills and your previous agreement. Include statements of the payments that you have already made, and provide documented evidence of your current income and expenses, such as a financial statement. Demonstrate what changes you have already made to increase your income or decrease your expenses and why this has not been enough to make the situation better.

Most of the time, hospitals have programs in place for people in your situation. If you know what these programs are, apply for them using the relevant forms if there are any. If not, ask whether you could apply under any of their hardship programs.

Hardship Letter To Hospital Example

{Your Name}
{Your Address}
{Your Phone Number}

{Hospital Name}
{Phone Number}
ATTN: {contact person}


RE: {consolidation/restructuring/forgiveness} of debt on medical bills for {Name}, account {number}

To Whom It May Concern:

My name is {Name}, and I was a patient at {hospital name} on {date}, where I received{a specific procedure, treatment, etc.}. My insurance covered {amount in dollars}, which left a balance of{amount in dollars} for me to deal with myself. { Or note that you did not have insurance at the time of this incident}.

I worked out a payment plan of {amount in dollars} per month, which I have been paying since {date}. However, due to {death in the family, loss of a job, other medical problems, etc.; be specific and emotional}, I am struggling greatly with making ends meet every month.

I have attached {relevant financial documents} to this letter, so that you can see that my monthly income is only {amount in dollars}, all of which must go to {mortgage, rent, other payments}, leaving very little left for the amount I owe you.

I am now only able to pay {amount in dollars} every month {or indicate that you would like to have your debt forgiven due to this hardship}. I know that the hospital has programs in place for situations like mine, and I hope that we can work out a plan that will satisfy both of us.

Please contact me as soon as possible so that we can begin this process.


{Sender Name}

Writing A Veterinary Bill Hardship Letter

Veterinary bills are expensive. Nevertheless, if your beloved pet falls ill but you don’t have sufficient funds for it, you cannot allow it to suffer, much less die. Instead, you usually take your pet to the vet and explain the situation. There are numerous programs available to assist people in financial hardship who have high vet bills. Most of the time, the vet will want you to write a formal hardship letter that highlights the situation, so that a solution can be found.

Basic Rules in Writing the Letter

The letter should be written formally and in the correct format. It should clearly address the vet, or the name of the veterinary office. Include your account number, or the number of the bill you sent out. Make sure someone proofreads it for you, or read it again a day after writing it yourself, as it should also be free of grammar and spelling mistakes.

Specifics of the Hardship Letter

Start your letter by expressing your gratitude for the care they provided to your pet. Include their name and a brief description of what was wrong. Make sure to include dates as well. Do also show your gratitude for the fact that the veterinary office considered treating your pet despite the fact that you found yourself unable to pay. This shows respect for the fact that the vet trusted you, and you should not break this trust.

Next, explain that you are in a situation of financial hardship, and that you need some degree of flexibility in paying for the treatment of your pet. It is likely that your vet will have offered some sort of credit line but if you are in a situation of financial hardship, your application will likely have been declined. Also describe your other attempts to gain access to funds, such as crowdsourcing, and how successful (or not) these have been.

Make it clear that you do not expect the bill to go away, or even for the amount to be reduced. Rather, you should be looking at a way of paying the balance off over a certain period of time. Make an offer of a specific amount that you are able to pay each month. Do not promise more than you are actually able to pay. If you did crowdsource for your pet’s treatment, and you received some funds towards that, then make sure that you include that in your offer. Furthermore, if you have any particular skills that could be of benefit to the vet’s office, offer those in lieu of payment as well.

Veterinarians have a passion for animals, not for money. Hence, so long as you make it abundantly clear that they were able to save your pet’s life, and that you have every intention to pay back the money you owe, it is likely that they will accept your offer. This is also because legal recovery actions are incredibly expensive, and the vet would prefer to come to some sort of voluntary agreement with you, rather than going through the legal system.

Veterinary Bill Hardship Letter Example

{Phone #}


Dear {veterinary office}:

Thank you from the bottom of my heart for your skilled and compassionate care of {pet’s name} during {his/her} recent {injury/illness}.

I can also never thank you enough for focusing more on the emergency medical situation than on billing matters. Your respect and trust is much appreciated.

With that being said, I will need some flexibility in paying off the costs of {pet name}’s treatment. My application for the credit line you recommended was declined, and my efforts at crowdsourcing funding gathered only {amount}.

I’m not seeking to have you reduce the bill in any way. Rather, I’m hoping you can see your way clear to accept payments of {amount} per month. Additionally, please let me know if there is any work I can do in or around your veterinary office to help offset what I owe you. My skills include {landscaping/marketing/painting/etc.}.

Thank you again for everything. {Pet’s name} is {home with me/at peace over the Rainbow Bridge}.


{Sender Name}

Writing A Hardship Letter For Short Sale

If you have to short sell your property as a way to avoid foreclosure, your realtor may want you to write a hardship letter for short sale. Short sales are real estate transactions in which the amount paid for selling the property is less than the amount still owed on it and this is provided as payment to the lender. In order to have an acceptable short sale, the lender must be wiling to receive less money than the outstanding debt. Since there are costs for proceeding with the foreclosure, the lender may be willing to accept a lower amount.

Basics of Writing a Hardship Letter for Short Sale

The letter is a personal one that you write to your lender. It should explain why you have missed payments and what financial difficulties you currently undergoing. This is a normal part of the overall process. You will usually also have to include bank statements, financial statements, salary stubs, and tax returns. Additionally, you will have to evidence the hardship, which means you have no control over the situation you are in.

The letter itself should be as short as possible, without missing out any important information. There are templates that you can follow, but they should be seen as a guideline only, not something you can simply copy and paste.

Your letter should explain your situation and provide evidence of your hardship. It should also include details on why it is in the interest of the lender to accept a short sale. That it is in your best interest is clear, so you do not need to focus on that. Rather, you have to sell the short sale to the lender.

Explaining Your Hardship

Some hardships are quite commonly accepted. They include military service, natural disasters, interest rate resets, medical expenses, separation or divorce, loss of job, involuntary reduction of hours, or job transfer. Other reasons may also be accepted.

Make sure to include:

  • Your contact details, including account number
  • Photocopies evidencing the changes in your financial situation
  • Photocopies of all your bills
  • Proof of efforts you have made to reduce your expenses and/or increase your income.

Remember that you are asking your lender for a favor. Thus, there is no guarantee that your request will be granted. Hence, do not indicate or imply that the lender can be blamed for your situation. You should also not make any promises that you cannot keep. Additionally, you should not talk about the possibility of getting money from non-traditional sources, such as borrowing from your parents. Because that isn’t regulated, the lender will not be able to count on it. Finally, you should not use the letter to write a lengthy emotional account of how your hardship situation has affected you. That is common sense and it does not provide any new information on your ability or inability to meet your financial obligations.

A final thing to remember is that this is a formal letter. That means that you have to write it properly, without any spelling or grammar mistakes. You should also proofread it, or ask someone to do it for you. Send it via registered post and keep photocopies of the letter and attached documentation as well.

Hardship Letter For Short Sale Example

{Your Name}
{Your Address}
{Your Phone Number}


RE: short sale request for my home at {address}

To Whom It May Concern:

My name is {Name}, and I currently reside at {address}, a house that I bought on {date of purchase}. At the time, {mortgage company} provided me with a {30-year, 15-year, etc.} mortgage of {amount in dollars}, with a {fixed/variable} interest rate.

When I purchased the home, I was perfectly capable of making the mortgage payments on time and in full. Since {date}, however, I have been struggling to make the payments because of {details of why you have fallen behind on payments; be specific}.

Currently, my monthly income is {amount in dollars}, which must go to {medical payments, childcare costs, etc.}, leaving an amount that will not satisfy my mortgage payment.

I have found a buyer who will purchase my home for {amount in dollars}, which is the best offer I have found since putting the home on the market in {month}. I am hoping you will accept this offer so that we can both avoid the hassle and cost of a foreclosure.

I would also appreciate it if we could work out a plan that doesn’t require you to make a negative report on my credit.

I have enclosed the relevant financial paperwork that will help to illustrate my current situation, including {explanation of the paperwork you’re including}.

I am truly sorry that I have ended up in this situation, and I hope that my plan for this short sale will make it so that we can all move on as quickly and smoothly as possible.


{Sender Name}

Writing A Hardship Letter For Health Care Exemption

Health care insurance companies regularly change their policies and procedures. They also frequently change their prices, which is something that they are contractually allowed to do. With the new Trump Administration causing some doubt over the continuation of the Affordable Care Act, many insurance companies have started to change their polices and prices, which can cause significant difficulties, including hardship, for many people. If this is the case with you, you may be able to write a letter to your insurance company to allow an exemption.

How to Write a Hardship Letter for Health Care Exemption

The letter to your health insurance company is a formal letter and should be written as such. This means that you should proofread it properly so that it does not contain any grammar or spelling errors. You should address it properly and to the right person, and you should date it. The subject line should also indicate what you are writing about, as well as your policy number.

Starting the Letter

Start your letter by explaining that you would like an exemption from the latest policy change. Indicate when the change is due to take effect, and that you would prefer to remain on the plan that you are currently on. Indicate that should the new plan be imposed on you, it will cause significant hardship for you and your family.

Content of the Hardship Letter

State the amount you currently pay and how often you pay it, while also stating your deductible and your copay. Then explain how this would change under the new plan. It is likely that at least one of the three elements – the monthly coverage, the deductible, or the copay – will rise significantly although it is usually all of them for there to be real hardship. Indicate that your alternative would be to move to a cheaper plan, but this would mean you have less coverage but you need the coverage for your family.

Make it clear that in most cases, employees save a significant amount of money by not accessing their employer’s health insurance. However, this may not be the case for your family. Indicate how much you earn each year before tax, as well as how much others in your family make, and show that there is no company insurance to rely on. If this is the case, you may find that you are under the income cutoff for a family of your size, and that this means that under the State Exchange of the Affordable Care Act, you do not qualify for tax credits or subsidies. Explain that you would then have a higher copay and that you would not receive dental or vision coverage, if that is the case.

Essentially, you must make it clear that you wish to stay with the insurance company that currently covers you, because you appreciate what they offer, but that you will not be able to do so if they change their policy. Provide evidence from quotations you have received from other insurance companies and from your employer’s coverage if applicable.

Hardship Letter For Health Care Exemption Example

To Whom It May Concern:

I am writing to request an exemption from the new health care coverage that will go into effect on {date}. I would like to maintain my current plan, as the new one will be detrimental to my family and cause extreme financial hardship.

The old coverage cost us {amount} per month for a(n) {amount} deductible and a(n) {amount} copay. The new health care plan would require us to pay {amount} per month for a(n) {amount} deductible, which will cost me {amount} more per month for less coverage.

While I understand that in many cases, not having access to employer health insurance will result in savings costs for employees, this is definitely not the case for our family. While I earn approximately {income} annually in gross wages, my {husband/wife} makes {amount} per year with no company insurance, which puts our {number}-person family over the income cutoff to qualify for subsidies/tax credits under the Affordable Care Act’s State Exchange. We would also be receiving no vision or dental as well as a higher copay. It’s a big step down from the generous, affordable policy we’ve enjoyed through {Company Name}. We got quotes from a local insurance agent and they were just as difficult for our financial situation.

It is vital that we retain our current coverage. Not only does our family have ongoing health care needs, we have been counting on the {aspect} in order to provide {care} for our children. I have attached a copy of our {year} tax return as well as pay stubs and a copy of our recent health care costs. Thank you for your consideration.