Writing A Waiver Of Penalty Letter

A waiver of penalty letter is a formal request in writing to waive a penalty that has been imposed on you. For instance, you may be given a citation, a penalty fee, or a new financial obligation. If you feel that such is undeserved, or if you feel that it would unfairly affect you, then you can ask for it to be waived. That said, there is no guarantee that the issuing agency will give in to your request, but it never hurts to ask.

It is very important, however, that your waiver of penalty letter is formal. Exactly what should be included in the letter will vary depending on what type of penalty you are facing. That said, the entity that you are dealing with will likely have certain terms and conditions that will determine whether or not you are eligible to have your penalty waived. Hence, before you begin writing your letter, you have to make sure that you have looked into the different terms and conditions, thereby making sure whether or not you qualify.

How to Write a Waiver of Penalty Letter

You should always start your letter formally, explaining first why you are making such a request. You must make sure that the entity to whom you are writing to understands exactly which fees you are referring to, and whether you are requesting a full waiver or perhaps any other form of modification to the imposed penalty.

You should also provide any supporting information that you have, in as much detail as possible. List dates, places, people involved, costs incurred, venues, and so on. Do not, however, exaggerate your assertions. Similarly, you should not be emotional. The entity you are writing to cares about facts, not about feelings.

When you are ready to send your letter, you must make sure that it includes any documented evidence that you may have. This includes copies of receipts, witness statements, email printouts, photographs, and anything else that you may have that supports your statement or request. Do also make sure that you keep your own copy of all of the documents and that you send the letter via registered post, and that you get a receipt as well.

Reasons to Write a Waiver of Penalty Letter

There are a number of situations in which you may want to write a waiver of penalty letter. These include the situation when:

  1. You want to have your bank charges waived.
  2. You have been denied a visa due to a criminal history and have incurred a penalty for this. You may then also want to write a letter appealing the decision itself.
  3. You have been hunting and have been told that you did not do so in the legally accepted manner.
  4. You paid a bill late, such as a credit card bill, and incurred a late payment fee.

The above are just four examples of situations in which you may want to write such a letter. Essentially, in any situation where you may have to pay a penalty, you could write one. However, do be aware that there is no guarantee that your penalty will actually be waived.

Waiver Of Penalty Letter Example

{Phone #}


Dear {creditor}:

I am writing to request that you waive the penalty of {amount} on account number {number}. It’s true that I paid {number} days late, but there were extenuating circumstances.

For {number} years I have made monthly payments on this debt, without exception. I know the due date by heart and it is also marked on my calendar.

However, {on or around the most recent} due date, I suffered extreme hardship in the form of {accident/injury/death in the family/other emergency}. As you can imagine, my priorities instantly shifted. It wasn’t until {situation resolved} that I took a look at my missed bills and other responsibilities and realized that {creditor} was among them.

I promptly resumed payments at that time, but it was too late to avoid being assessed the late fee. I’m also concerned that this will cause my interest rate to rise, or that it will otherwise affect my good credit.

Please consider reversing the fee in light of these unusual, one-time circumstances. I wish to remain in good standing with your {company/agency}.


{Sender Name}

Writing A Hardship Letter For Rental Property

If you own an income property and it is still under a mortgage, there are certain situations in which you may find yourself incapable of paying the amortization. If this situation is beyond your control, which means you are experiencing true hardship, it may be possible for you to avoid foreclosure on the property by appealing to the goodwill of your lender. To do this, you have to write a properly formulated letter.

Tips in Writing a Hardship Letter for Rental Property

A hardship letter is a formal letter and must be treated as such. Address it properly, make sure it is proofread, and send it via registered mail. Keep copies for yourself so that you have a paper trail of your correspondence. Show that you are willing to come to an arrangement and there is a chance that your lender will feel the same way.

Start your letter by explaining that you are aware that you have not been making the necessary payments on your property, and that you hope to remedy that by being able to come to a mutually satisfactory arrangement. State that you wish to avoid foreclosure, but that you are currently experiencing financial hardship. It is very important that you are specific about the nature of your hardship, and that you include documented evidence for it. Examples of acceptable hardship include:

  1. Loss of employment or involuntary reduction in hours and income
  2. Death in the family
  3. Medical bills
  4. Sudden illness or disability
  5. Incarceration
  6. Separation or divorce

What to Include in the Hardship Letter for Rental Property

Explain that the money that you currently have as an income has to cover a number of bills. Include copies of all your bills, such as for medication, home mortgage, car payments, and food. Make it clear that you have worked hard at reducing your expenses by giving up on life’s luxuries, and that you have tried to increase your income, for instance, by taking on a part time job. However, despite these efforts, you still find yourself in a situation that makes it impossible to keep up with your payments for the rental property.

State that the property in question is one that provides you with rental income. Indicate when you rented out the property and for what monthly amount. If you don’t have tenants in the property or if there are a lot of vacancies, remember to mention that. If tenants are present and they pay their rent on time, explain why this still is not sufficient for you to keep up with the payments.

Suggest a Mutually Acceptable Solution

You must then provide a solution that you believe to be acceptable for you and the lender for the payment of arrears. State whether it is your desire to keep the property, or whether you would be happy with selling it, perhaps through a short sale. If you want to keep your property, make an offer of reduced payments, showing an amount and specifying for how long you would be doing that. Do not promise an amount that you really cannot afford in your current situation. Also, offer a repayment plan for the shortfall when you finally get back on track, again only offering to pay what you expect your future finances will allow.

Hardship Letter For Rental Property Example

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


To Whom It May Concern:

I am writing this letter to explain the reasons why I have been unable to pay my mortgage payments on the property at {address}, and to inquire as to what I can do to avoid foreclosure on my property.

My income has become significantly reduced recently, due to {sickness, death in the family, job loss, etc. BE SPECIFIC}. The money I have remaining every month must go to {food, car payment, mortgage on home, medication, etc.}. I have done everything in my power to keep up with the payments, but it unfortunately has become impossible {or will become impossible as of a certain date}.

I have been using this property as a rental income property for {length of time}, and I {do/do not} currently have tenant(s). {If you have tenants, indicate the amount they pay in rent each month, and why this is still not sufficient to keep you up to date on the mortgage} .

I believe I can resolve my debt by {your solution to “working out” the debt, or a request that they provide the solution}.

Please understand that I know I signed a contract and that I am responsible for these payments, but there is also only so much I can do with the little money I currently have.

It is my intention to keep this property if I can, so I hope we can work out a solution as quickly as possible.

Thank you,

{Sender Name}

Writing An Eviction Hardship Letter Casual

If you are experiencing financial hardship, it is possible that you are unable to pay your rent. In an ideal situation, you will have written a hardship letter to your landlord long before you started to face eviction. However, there may be situations where that was not possible, and you are now in fear of that notice from your landlord. Meanwhile, if you rent from a private landlord, it is likely that you have some sort of personal, perhaps even amicable, relationship with him or her. Hence, you may be able to write a casual eviction hardship letter.

Basics of Writing the Casual Eviction Hardship Letter

Although you will be writing this letter in a less formal style, it does not mean that you can write it on a napkin and not pay attention to what you say. Rather, it means that you can put a little bit more feeling into what you want to write. Hence, it should still be written neatly, on proper paper, and in such a way that it isn’t filled with spelling and grammar errors. You might want to consider writing the letter by hand, rather than on a computer, but you then really have to be confident about your spelling.

What to Say in the Hardship Letter

In the letter, start by expressing your apology for being unable to pay your rent. If you are facing eviction, you must have had several arrears in your payments, which means you have not been a good tenant. You must own up to this in your letter. Explain that you know your landlord has already been generous and that he or she has shown a great deal of understanding but you are currently undergoing a certain situation (describe this). Make it very clear that you are genuinely thankful for being understanding and that you do not wish to take advantage of the landlord’s kindness.

Next, request your landlord not to push through with the eviction. Point out that you really understand how serious the situation is, and that you understand the position of the landlord in serving the eviction notice. Indicate when you expect to have the money for the rent or your proposed schedule for paying your arrears if you plan to pay in installments. Do also offer something else as a goodwill gesture. For instance, you may want to invest in a certain repair project yourself or landscape the garden at your expense.

If your financial situation is now under control, indicate that in your letter and that you plan to pay all future rents promptly. On the other hand, if your situation has not yet stabilized, explain what you are doing to remedy the situation and your proposed schedule for paying the balance. You must demonstrate that the rent payments are now a priority for you. For instance, you could provide evidence of setting up a standing order with your bank, so that the landlord can see that the rent will take precedence over any other bill that comes out of your account. End your letter by once again thanking the landlord for his or her kind consideration.

For more sample hardship letters, click here.

Eviction Hardship Letter Casual Example

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


Dear {landlord}:

I am so incredibly sorry for being late with the rent again. I know that it was due on {date} and it is now {date}. You have been so generous and understanding in the past as I wrestled with {situation}, and I don’t want to take advantage of your kindness.

Please don’t proceed with the eviction. I definitely got the message when I saw your {letter/notice on the door}. I have the rent money and will {bring/mail} it to you immediately. Additionally, as a show of good faith, I hope you will allow me to {gesture such as upkeep of yard or repair projects}.

I promise you that I now have {situation} under control and will make prompt payment of the rent my top priority from here on out.


{Sender Name}

Writing A Hardship Letter For Loan Modification

Writing a loan modification hardship letter means that you are formally requesting your lender for some changes to the terms and conditions of your loan. This letter is an opportunity for you to highlight your financial difficulties and to prevent a foreclosure for the case of a mortgage. This letter must be factual, rather than a sob story, however, so do make sure that you write it properly.

Why a Loan Modification May Be Needed

There are two key reasons as to why you may apply for a loan modification:

  1. You have lost your job.
  2. Your are facing serious medical issues.

Other reasons, such as divorce, separation, death in the family, incarceration, and military duty, may also be accepted. However, whatever the reason may be, you have to make sure that you can provide sufficient evidence for it. You also have show how it is affecting you and your family financially.

Questions to Serve as Guide for the Content of the Hardship Letter

A lender will have a number of questions and you must attempt to answer these immediately. These are:

  1. Why are you behind in your payments?
  2. When did you start to fall behind?
  3. Will your situation improve and, if so, when and how?
  4. What modifications are you asking for?
  5. How much you can pay in the immediate and how long for.
  6. Whether you are receiving treatment if the hardship is due to an addiction.

Tips in Writing a Hardship Letter for Loan Modification

You must make sure that you offer something that benefits your lender as well. Being able to collect something and keeping the loan active would be better than you getting into bankruptcy or foreclosure. If you explain that you have every intention of repaying your debt but that you simply need some respite at this point, your creditor may be willing to consider it.

Your letter should be positive in tone. You must show yourself to be a trustworthy person who always pay as long as your finances allow it. Be matter of fact about this and provide evidence for your claims. Include payslips, copies of bills, bank statements, proof of attempts to reduce your expenses and increase your income, and so on.

It is also possible that you have sought out the assistance of experts like a lawyer or financial consultant. If so, they may be writing the letter for you. However, it is vital that you sign it and not the consultant or legal professional. You should also avoid simply copying a template.

When you write your loan modification hardship letter, keep it short and to the point. State the facts of your situation in an honest way. Never place any blame on the lender or other third party for your situation either. These letters are formal letters and they will be kept on your record permanently. Hence, make sure that it is written appropriately, addressed to the correct person in the right department, and free from spelling and grammar errors. It is also likely that your lender will have a standard form to fill in for loan modification requests, so do find out about that before sending your letter. Make sure you keep copies for your own records, and send the letter via registered post.

Hardship Letter For Loan Modification Example

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

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


RE: loan modification for {Name}

To Whom It May Concern:

I am writing this letter in support for my loan modification plan for the {mortgage, loan, etc.} on the {home, car, etc.} located at {address}. My intention is to stay in my home, and my hope is that the loan modification will allow me to get my loan in order and back on the right path.

I have been unable to pay my mortgage payments on time due to {explanation of the reasons you are experiencing hardship; be specific}.

I have attached the appropriate financial documents, including {list of documents}, which should illustrate to you how serious my situation has become.

I hope that we can work together, and quickly, to modify this loan so that I may begin to make the payments again as soon as possible.


{Sender Name}

Writing A Lower Payments Hardship Letter

There are numerous bills that you have to pay monthly or regularly. Generally speaking, these bills, such as credit card bills, rent, or utility bills, are paid at regular intervals. If you find yourself in a position of financial hardship, which means that you are unable to make some of those monthly payments, you may find that you have to write a lower payments hardship letter.

What Can the Letter Be Used For?

In most cases, a lower payments hardship letter is written for a line of credit where some sort of interest is paid. That is because all other types of bills, such as rent, utilities, or cellphones, are paid for a service. A reduction in monthly payments on those, therefore, would also result in a reduction of usage. However, on bills such as loans, car finance, mortgages, or credit cards, you could lower payments made on interest, but still make payments overall.

Write a Lower Payments Hardship Letter Formally

You must write this type of letter formally. It should be addressed to the right person in the right department, and that it should be formatted properly. It must include your personal details and your account details as well. You should also make sure that the letter is free from spelling and grammatical errors.

Describe Your Financial Hardship

Next, write a description of the financial hardship you are experiencing. The creditor is not interested in sob stories, however, so only put in the facts. Explain why you are in hardship and the impact this has had on your ability to pay your bills. Provide documented evidence (pay slips, termination notices, bills, etc…) of your financial situation.

Indicate Your Request Clearly

You should make your request as clear as possible. Indicate that you currently make quarterly/monthly/weekly payments on a certain account, and do tell the creditor that you have been unable to make payments for a certain period of time if that is the case. A word of warning: the longer you wait in writing this type of letter, the less likely it will be that your request for lower payments will be granted. Hence, write it as soon as possible.

When you make your proposal, do not simply ask your creditor for lower payments, as they do not know what you can and can’t afford. Rather, you should be concise and tell them exactly what you are proposing. Do not make promises you can’t keep, however. Creditors would rather wait longer for their money but know they are getting it, rather than expect a shorter period of time but payments are not actually made.

Honesty and openness go a long way. Remember that the creditors are interested only in how they will get back their money. If you have not made any payments for a long period of time, they are likely to have already started legal action against you. Hence, do not bury your head in the sand, but address the problem as soon as it starts to arise.

Lower Payments Hardship Letter Example

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


Dear {creditor}:

I am writing to request lower {weekly/monthly/quarterly} payments on {debt}.

Your records should indicate that I {have/have not} kept up with the required payments of {amount}. But now, due to {situation}, I can no longer afford that amount. {Describe financial/life conditions}.

I would like to propose lower {weekly/monthly/quarterly} payments of {amount}. I know this will extend the length of the loan that was offered to me, but the only alternative would be {default/bankruptcy/etc.}.

Please let me know if this arrangement works for you and I will immediately send the adjusted payment amount.


{Sender Name}

For more sample hardship letters, click here.

Writing A Hardship Letter To Stop Foreclosure

The U.S. Government believes that if homeowners are facing the threat of foreclosure, there are a number of things that they should do. The first is to make sure that they stay in direct communication with their lenders, rather than ignoring them in the hopes of the problem simply vanishing at some point. If they receive any requests, or if they receive any court documents, these must be responded to as soon as possible. However, the U.S. Government also believes that people should be able to stay in their homes. So much so, in fact, that the government has rendered those who leave their property incapable of receiving any help. This is quite significant, both for lenders and borrowers.

The problem with forcing people to remain in their homes is that they often stop treating the property properly. Lenders who have had to foreclose on homes have often found them to be in a state of significant disrepair and squalor. This is a terrible situation in and of itself, but it is one that may be able to work in your favor to a degree. Indeed, if you write a hardship letter to stop foreclosure, you can cite the fact that it means your lender will not be left with a neglected property. However, you must be very careful with this, as threatening or blackmailing your lender in any way will not go in your favor.

Before Writing the Hardship Letter to Stop Foreclosure

Before you write a letter of hardship, consider whether there is other help out there first. For instance, you may be approved for a Housing and Urban Development (HUD) program. These are counseling agencies that can help you find solutions to your problems and help you stay in your home.

Content of the Hardship Letter to Stop Foreclosure

If you do find yourself in significant hardship, then you may want to consider writing this type of letter. You should make it clear which property you are discussing and when you first started to own it. Explain that, as of a certain date, you started to fall behind on payments and that this is because of a certain situation. Detail the causes of your hardship, such as loss of a job, medical bills, or death in the family, and make sure they are dated as well. Indicate that, as a result of this hardship, you have not been able to keep up with your mortgage payments, stating how much they are.

Explain that you hope to be able to avoid foreclosure. State that your home is not currently on the market and that you would like to remain in it. If you do want to sell your property, explain that it has been listed since a certain date and for what price. If you want your lender to approve a short sale, this is important information.

Next, you should offer a solution. This could be a temporary loan modification, for instance. Be to the point and factual, so that your lender is not left with any unanswered questions.

Hardship Letter To Stop Foreclosure Example

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


RE: stopping foreclosure on {address of home}

To Whom It May Concern:

I am writing in the hopes that this letter will help to stop the foreclosure proceedings on my home at {address}.

I have owned this home since {date}, and have recently begun to fall behind on payments due to financial hardship. This hardship was caused by {details of the hardship; could be medical bills, death, job loss, etc.} and has left me unable to keep up with the mortgage payments of {amount in dollars} per month.

I would like to avoid foreclosure. I {am/am not} committed to staying in my home. My home {is/is not} on the market. {If it is on the market, indicate the current asking price, and if you are requesting approval of a short sale}.

{If you are trying to consolidate or restructure your loan, indicate that here, along with any plan you have in mind for doing so} .

I have attached all my relevant financial documents, including {list of what you’re attaching}. I hope we can work together to avoid the complications and price of foreclosure.

Please contact me at your earlier convenience.


{Sender Name}

Writing A Hardship Letter 401k Withdrawal

Normally, you are not allowed to take money out of a 401k, but some exceptions do exist. If you are undergoing serious financial hardship, the Internal Revenue Service (IRS) does offer hardship withdrawal solutions. However, to be considered, employers must also allow such a withdrawal, and you will need to write a hardship letter to prove your case as well.

Writing this type of letter is quite difficult. First of all, your employer will need to make sure that you qualify for a withdrawal under the IRS rules. Additionally, you have to be able to demonstrate that your financial hardship is not just something that is of a short-duration, but one that it is a very heavy burden for you.

It is very important that you write your letter properly. It has to be written in a formal style and there should be no grammatical or spelling errors in it. The recipient of the letter should be the person within your company who manages the retirement accounts. You must also make sure that you keep copies of any letters you send or receive. And do make sure that if you have any documents that prove your hardship, you should include (and copy) them as well.

Reasons for Qualification

Common qualification reasons include:

  • Medical expenses for self or dependent
  • Making a down payment on a primary home
  • Need to avoid eviction or foreclosure on a primary home
  • Expenses for education
  • Home repairs that are essential
  • Funeral expenses

What to Do If You Qualify

If you do qualify, you must then look at the hardship withdrawals that your employer offers and speak to your supervisor to find out to whom to address the hardship letter. There are significant legal issues to face, and deciding whether or not you will be allowed a withdrawal is complex. If your company has its own guidelines in place, they may be tougher than the federal criteria. Furthermore, you will have to pay taxes on the withdrawal, and sometimes you will have to pay a penalty on it as well.

Clearly, withdrawing from a 401k should only be done in extreme situations. It will have a significant impact both on your income today and in the future. Additionally, you may not be allowed to add new funds to your 401k for a 12 month period as a result of your withdrawal. These are all significant considerations to make.

What to Do After Sending the Hardship Letter

Once you have sent your hardship letter requesting a withdrawal, you should call them through the telephone after around one week to make sure that it has been received. In fact, it is recommended to send it through registered mail, requesting a receipt as well. However, it is important to understand that your employer is under no obligation to allow your withdrawal. Because the process is so long and complicated, it is important that you get the ball rolling as soon as you start to realize that financial difficulties may lay ahead. There is no way, in other words, that you will have a withdrawal in your account within just a few days, so it might even be too late to get you out of your hardship.

Hardship Letter 401k Withdrawal Examples

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


To Whom It May Concern:

Please consider this a formal request for a {monetary amount} withdrawal from my 401K account due to financial hardship. At this time, I am facing {foreclosure, bankruptcy, eviction, educational termination, etc.} due to {disability, illness, medical bills not covered by insurance, etc.}.

If approved, the withdrawal will allow me to {pay my rent, afford daily expenses, stay in school, meet medical needs} for {amount of time}. This is an immediate and unbearable burden on me and my family. I have already attempted alternative options, such as {taking out a commercial loan, drawing from an IRA, etc.}, but unfortunately, {result}.

This withdrawal will save me from having to {drop out, foreclose, declare bankruptcy}. I appreciate your time and consideration with regards to my request. Attached are my financial statements, pay stubs, and loan responses.

Thank you,

{Sender Name}

Writing A Hardship Letter To Bank Of America

If you have a loan with the Bank of America and you find yourself in a situation of hardship, you could consider writing to them to ask for some sort of reprieve. It is very important, however, that you follow the accepted rules when it comes to these letters. This starts with identifying your hardship, and whether what you are experiencing counts.

What Is Hardship?

Hardship is a situation beyond your control that negatively affects your finances. For instance, the death of a family, a loss of a job, a sudden illness, a job relocation, divorce or separation, or an involuntary reduction in income, are all reasons for hardship. Generally speaking, this is also of a temporary nature.

Hardship letters are formal documents and must be treated as such. They should be properly addressed and written without grammar or spelling mistakes. The subject line should also include your account number. Furthermore, the letter should be short and to the point, focusing on facts rather than feelings.

How to Start Your Hardship Letter to Bank of America

Start your letter by explaining that you currently live in a property onto which a Bank of America mortgage has been secured. State that you have fallen behind on your payments, adding a specific date, and that you hope to come to a resolution. Explain that you are currently experiencing a situation of hardship and evidence this. Include copies of medical statements and bills, job changes, legal divorce proceedings, and so on. Again, make sure that you add the date of each of these happenings, so that the lender can create a timeline.

Make Your Proposal and Indicate How Long This Will Continue

You should then make an offer, which has to be one that you can afford. Do not make any promises that you will be unable to keep, as this will leave you in a much worse situation. Indicate exactly how much you are able to pay and from what date. You should also state any proactive steps you have already taken to lower your expenses, such as budgeting better and avoiding luxurious habits.

Finally, you should outline how long you expect the said situation to continue, and how you intend to repay the shortfall after the situation is resolved. Make it clear that you wish to remain in your property and ask whether there are any programs of the Bank of America that you may be eligible for. For instance, there is the Home Affordable Refinance program, the Home Affordable Modification program, and the Home Affordable Foreclosure program. Make sure that you indicate which one you are interested in.

Ending the Letter

End your letter by listing all your attachments. Those should, when put together, be a full financial statement of you and your current situation. If there is any other information that you believe may be useful, add it to the list as well. Finally, thank Bank of America for taking your letter into consideration and tell them that you await their response. Do keep copies of your letter and send it via registered post.

Hardship Letter To Bank Of America Example

{Account Number}
{Your Name}
{Contact Number}
Bank of America
ATTN: Home Loans


To Whom It May Concern:

I am writing with regard to my home at {address}, which has a mortgage owned by Bank of America. I have been behind on my mortgage payments since {date}, and I am writing to begin the process of resolving this situation.

I fell behind on my payments because {detail the reasons for hardship, including medical problems, death, job loss, etc.}, which occurred {date}.

I am unable to pay the monthly payments as is, but I believe I can afford {amount in dollars} per month, beginning {date}.

My home {is/is not} up for sale, and the property taxes and homeowner’s insurance {is/is not} current.

I know that Bank of America has programs such as Home Affordable Foreclosure, Home Affordable Modification, and Home Affordable Refinance. I am interested in {name of the program that suits your needs}.

I have attached my financial information, including a detailed account of my income, recent pay stubs, and {any other information they’ve asked for or you think is relevant}.

It is my hope that we can bring a swift and satisfying resolution to this problem as quickly as possible.

Please contact me at your earliest convenience.


{Sender Name}

Writing A Hardship Letter To Mortgage Company

A hardship letter is a very important piece of communication that you may need to write if you are in financial difficulty and want to have your loan modified. It is very important that you write the letter in an accurate and polite manner, which may be enough to convince your mortgage provider that you are worthy of a chance to keep your home. It is normal to feel intimidated because you have to tell an institution some personal things and you are not guaranteed that your request will be accepted. However, not writing the letter may mean that your property will be foreclosed upon.

Consider the Various Options that You Have

The first thing you have to do is consider every other option. This is firstly because those options are often easier to be accepted for than a loan modification and, secondly, because your lender will want to see that you have already been proactive in resolving the situation. If there really is no other option out there, you must contact your lender and inquire as to whom to address the hardship letter to and what the letter should include. It is possible, for instance, that they have forms that you have to fill in. Mortgage companies change hands quite often as well, which is another reason why you must call them first: the company you took your loan out with may not be the one that still holds your mortgage today.

Estimate How Much You Are Able to Pay at the Present Time

You should then calculate exactly what you can afford in regards to payments. What you should never do is write a letter that leaves any questions unanswered. Rather, you have to explain that you are in difficulty, why you are in such a situation, and what it means. You should then state which payments you have already missed (if any) and you believe you will still miss (if any), and why. You should then explain how you intend to pay for those missed or late payments later on and when.

Explain the Facts of Your Current Situation

Finally, you need to provide the facts as to why you are in your current situation. That this is factual is perhaps of the greatest importance. They do not want to know how hard it is on you emotionally, as that is already a given. Rather, they want to know what happened, why it happened, how long you expect it to last, and how you aim to fix it.

For example, if you were hospitalized and this caused you to miss several days of work, as well as having substantial medical bills, indicate that. You must also state when you intend to return to work, and when your income will return to normal. You have to explain, at that point, how you intend to get back to making your regular payments, and also how you aim to pay for the shortfall once you are back on track. You must show yourself as being apologetic, proactive, and willing to come to some sort of arrangement. While all of that will not guarantee that your lender will agree, such things will usually make it more likely.

Hardship Letter To Mortgage Company Example

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


To Whom It May Concern:

I am writing this letter to explain the reasons why I have {or will soon become} delinquent on my mortgage payments, and to request that we work together to avoid foreclosure on my home.

My income has become drastically reduced recently, due to {sickness, death in the family, job loss, etc. BE SPECIFIC}. The money I have remaining every month must go to {food, car payment, medication, etc.}. I have done everything in my power to keep up with the payments, but it unfortunately has become impossible {or will become impossible as of a certain date}.

I believe I can resolve my debt by {explanation of how you intend to pay them back OR a request that they provide a “workout” solution for your loan}.

Please understand that I know I signed a contract and that I am responsible for these payments. I am not attempting to shirk my responsibilities, but there is also only so much I can do when I still need to keep food on my table.

It is my intention to stay in my home, so I hope we can work out a solution as quickly as possible.

Thank you,

{Sender Name}

Writing A Hardship Letter Extended Leave

There are numerous types of hardship letters. Usually, they are requests for financial assistance, either in the provision of a grant, for instance, for funeral expenses; or a delay of taking payments, for example, with a loan or mortgage. However, another possible reason why you may write a hardship letter is if you want to request an extended leave.

When Do You Need an Extended Leave Hardship Letter?

When you are employed, you will be allocated a number of days of leave per year, which you can use at your personal discretion. A lot of employers also have other forms of leave in place, such as maternity leave and even paternity leave, time off for funerals, parental leave if a child is sick, and so on. Sometimes, a situation may occur in which you need more leaves, for a variety of reasons. Perhaps you have a relative who has developed a sudden but serious illness and requires care. Or you may have been declared bankrupt and are struggling to meet the responsibilities associated with that. These are all cases in which you may want to request an extended leave.

How to Write a Hardship Letter for Extended Leave

All hardship letters, regardless of purpose, should never be longer than one page. They should be short but to the point, in other words. They should also be honest and provide a clear and concise explanation of what is going on. Your letter has to be formal, explaining that you have unexpected hardship that requires you to request that extended leave.

Your letter should explain when you first started to experience difficulties, which is something that your employer should already be aware of. It should highlight what has caused an unexpected situation, such as illness, death in the family, disability, and so on. It should also explain that you have already used all your paid leave in accordance to corporate policy. Your letter should also indicate what would be the consequences if you are unable to be on leave, and why that would be so. Make sure that you also indicate the length of your extended leave.

Make sure that your letter also expresses your gratitude for working in your company. Showcase that you have been an excellent employee and that you feel committed to the organization. The letter should make it clear that you do not want to leave the company as a whole, but rather that you would prefer to have an extended leave. Be accommodating, however. Perhaps you could work a few hours during the week, even if it is to train a temporary replacement. More than anything, tell your employer that you intend to come back as soon as you possibly can.

Last but not least, place the ball in the court of your employer. Ask them to contact you with possible solutions to the dilemma, while making it clear that you would like to find a mutually agreeable solution. In doing so, you are demonstrating to your company that you are a committed employee.

Hardship Letter Extended Leave Example

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


Dear {Mr./Ms. BossName}:

I would like to make a formal request to take an extended leave from my position as {position} here at {Company Name} on account of severe hardship.

As you may already know, as of {date} I have been struggling to accommodate the unforeseen impact of {disability, sick family member, death in the family, bankruptcy, illness, etc.}. I have taken all the paid leave I am able to take according to corporate policy, but if I don’t continue to {description of action taken while on leave}, it will result in {consequence}.

I love working at this company, and I have always made every effort to be a model employee. I feel that the work I do here is good and important and I don’t want to leave it. Instead, I am asking for extended leave until {date/further notice} so that I can {recover, care for a relative, etc.}. I can come in {part-time, a few days a week, etc.} to train a temporary replacement, but it is my hope to return to work as soon as I am able.

Please let me know if there is a way to work this out between us. Thank you for your time and your consideration in this matter.

Thank you,

{Sender Name}