Writing A Hardship Letter Abandonment

If you own property, particularly commercial real estate, you may find yourself in significant financial hardship as a result of abandonment. Abandonment happens when tenants leave, usually unexpectedly, and you are unable to immediately find replacements. The result is that you may have to sell your property. Because commercial real estate is so expensive to hold, it is quite common for property owners to request a short sale.

A short sale is a process in which you sell the property for less money than the outstanding balance on your mortgage. In a short sale, the lender has to agree not just to do this, but also to dismiss the difference between the money collected and the money owed. Lenders may be willing to do this if it is demonstrated that holding the property and eventually moving into foreclosure would be more expensive.

Basic Content of the Hardship Letter Abandonment

A hardship letter is a formal document that must focus on facts. You have to keep it short and to the point, trying to fit all the information on a single page. Attach any documents you have to prove each of your points, such as a property valuation, details of your tenants, when the tenants left, an income statement, the short sale offer, and so on.

You must start your letter by explaining which building you own, and the type of building. State that you hope to come to a short sale agreement. Explain what your current mortgage payments are and that, in order to make those payments, you require at least a certain number of tenants to be in the property. However, your property has now been abandoned, which means you are no longer able meet that requirement. Make sure you indicate why your property was abandoned and when.

Explain Why the Situation Is Unsustainable for You

Indicate your current rent figures as well as how much money has been invested in renovating and repairing the property. Explain what other steps and measures you have taken in order to reduce your outgoings and save money. State that, despite all of that, your tenants have still chosen to abandon the property. This could be due to certain issues, such as a housing crisis or property damage, for instance. Basically, what you must demonstrate, is that the result is a substantial loss of income on your part.

Your letter must make it clear that the current situation is unsustainable for you. This means that you will not be able to keep up with the mortgage payments, and that you may soon have to file for bankruptcy. Explain that, if at all possible, you would prefer to circumvent or avoid that, and that you feel a short sale could be an appropriate solution. You should only make a request for this, however, if you have already received a short sale offer. Hence, make it clear who has made the offer, when, and the offered amount.

Remember that there is no guarantee that your request will be accepted. However, if you can demonstrate that it is in your lender’s interest to do so, you may have a chance.

Hardship Letter Abandonment Example

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


To Whom It May Concern:

I am writing this letter to request the short sale of my {building type}. In order to meet my mortgage payments, I require the rent from {number} tenants. However, due to the {location/condition of the property/etc.}, the property has been abandoned.

I currently charge {amount} for rent per person, and I have invested {amount} into property repairs. I have also {additional steps to save money}. However, due to {property damage/housing crisis/etc.}, my tenants have abandoned the property and I no longer have a steady stream of income.

Soon, I will no longer be able to meet the loan requirements and will have to file for bankruptcy. I am hoping to circumvent that chance with a short sale of the property as soon as possible.

Attached are the necessary documents outlining the property value, damage, repairs, and upkeep costs. I am grateful for your assistance in this matter.

Thank you,

{Sender Name}

Writing A Medical Insurance Appeal Letter

Having healthcare insurance in place does not guarantee that every medical expense will be covered. Unfortunately, a lot of people find it surprising that even after paying their deductible, they are still left with some bills to pay because the insurance company has denied their claim. It is believed that 70% of claims that are denied were done in error, however, which is why it is so important that you look into this properly. If you are denied a claim, you need to appeal that decision. In fact, between 40% and 50% of all appeals are successful, so it is certainly worth trying it.

Before Writing a Medical Insurance Appeal Letter

The first thing you need to do is telephone the customer service department to find out why your claim was denied. It is possible that there is a simple error that can be resolved there and then. If not, then you do need to write an appeal letter, which has to follow the guidelines as stated in the policy. It is likely that you feel very angry and want to lash out at the claims adjuster. However, you should avoid that. Instead, try to maintain a professional and polite tone. Do not tell your insurance company to revise the decision, in other words. Instead, ask them if they could reconsider it.

Make sure that you truly understand your policy as well. There may be a time limit associated to when you can appeal a decision, so make sure to comply with that. Furthermore, you should find language in the policy that is on your side. Hence, make sure to highlight the elements of the policy that discuss appeals.

Content of the Appeal Letter

Make sure that your letter contains documented evidence supporting everything you say. For instance, you can include doctor’s notes and letters, radiology reports, medical records, and so on. Your letter should also include:

  1. Your name, policy number, identification details, and claim number
  2. The reason given for denying your claim, using their language
  3. A history of the medical condition and the treatments that were received
  4. Why you believe the denial was wrong, adding supporting information such as a doctor’s letter to confirm diagnosis
  5. All relevant dates, such as the date of the diagnosis, the date of treatment, and the date of the denial

Your letter should also explain what you would like the next steps to be. For instance, you may feel that the insurance company should compensate the bill in full. Do make sure that such is not done in a demanding tone, however.

Remember that you are writing a formal letter and it should be treated as such. It should not contain any grammar or spelling errors, and it has to be properly addressed. Ask someone to proofread it for you if possible. Also, keep photocopies of everything that you have sent, and send your letter via recorded mail. This gives you a paper trail to demonstrate that you have been proactive in resolving the situation. If you do not hear back from them after a week, make sure that you follow up.

Medical Insurance Appeal Letter Example

{Phone #}


Dear {representative}:

I was shocked and dismayed to receive notice on {date} that {insurance company} denied payment for {procedure}. I’ve received a bill from {physician/medical center} for {amount}. I cannot pay this.

Before consenting to {procedure}, I contacted your company to ensure that the doctor and facility were in-network. In an abundance of caution, I also obtained the “code” for the procedure. Nevertheless, the denial letter states that {procedure} was not covered due to {reason}.

This is egregious and unacceptable. I did my due diligence and now the entire financial wellbeing of my family, not to mention future heath care for {condition}, is in jeopardy.

Please take all necessary steps to rectify this error. It is causing my family great stress at a time that we should be focused on recovery.


{Sender Name}

Writing A Credit Card Hardship Program Letter

When people use their credit card, they do not do so with the intention of coming to a situation in which they cannot repay their debt. However, some things may happen that affect their finances. While it may be temping to do nothing and simply hope that the situation will resolve itself, the reality is that it usually won’t. Furthermore, credit card companies understand that people sometimes have difficulties and they would rather work with you to come to a solution, instead of having to engage in expensive recovery actions. Hence, if you find yourself in a situation of financial hardship, you should be proactive and contact the credit card company to come to a resolution.

How to Write a Credit Card Hardship Program Letter

There are numerous templates available that show an outline of the things that should be included in this type of letter. What sets the credit card hardship letter apart, however, is that it has to be seen as a stepped approach, rather than a single letter that you can write and send. Rather, you must be realistic and expect to write a series of letters that include the right things at the right time.

As such, you very first letter should be one in which you explain that you are in financial hardship and why. You should be professional, considerate, and polite. The credit card company is not interested in how your hardship is making you feel, but rather in facts. They want to know what has happened to you financially and how this has impacted your ability to repay your debts. You should also offer to pay between 15% and 25% of the outstanding balance of your credit card.

Importance of Honesty

Honesty is very important in these letters. Do not, for instance, eagerly offer to pay 50% of your balance, unless you are actually capable of doing this. Also remember that time is one your side. Older debts are notoriously difficult to recover, so it becomes more likely for a credit card company to agree to a deal.

Whatever your offer is, it has to be one that you can actually afford. This is why you must also include photocopies of all your proofs of income and of outgoings. Send bank statements, pay stubs, unemployment information, copies of expenses, investments, and so on. The credit card company will require all of that documentation and it is likely that they will also contact you for more.

Make Sure to Comply with the Agreed Upon Payment Scheme

If, after receiving your letter, the credit card company agrees that you are in hardship, they may offer you some sort of program. If so, make sure that you agree to their terms and conditions, and stick to them in full. If you miss any of the payments then agreed, or if you otherwise breach the agreed terms and conditions, you will have rendered it null and void. Remember that the credit card company is doing you a favor by offering an agreement in the first place, so do make sure that you stick to it.

Writing A Credit Card Hardship Program Letter Examples

{Phone #}


Dear {creditor}:

Please consider this letter my application for your hardship program.

I currently owe {amount} on account number {number}. My account is not yet delinquent.

Due to financial circumstances outside of my control, I am no longer able to make even the minimum monthly payment. {Explain hardship}. I am reaching out to you before my account is in arrears in the hopes of maintaining my good credit and avoiding late fees, a higher interest rate, and other penalties.

Please consider accepting monthly payments of {amount}. I would also appreciate it if my interest rate were lowered to {percentage}.

I am now {starting a new job/being treated for an illness/in a better living situation} and am confident that this rough patch will be over in a matter of a few months to a year.

I will be grateful if a revised payment plan is accepted. However, before moving forward with such a plan, please send a written copy of such and advise me as to how this might impact my credit rating in the future. I wish to avoid a negative credit report.


{Sender Name}

Writing A Hardship Letter Damage To Property

Sometimes, property damage can force you to become unable to pay your bills. For instance, with the recent hurricanes, Harvey and Irma, people have found themselves in significant financial difficulties. Insurance companies are slow to pay out, if they pay out at all, and some people have found that they have to replace virtually everything in their home. Many have also found themselves unable to work due to property damage at their place of work, which in turn means they are experiencing a financial hardship. In those cases, it may be possible to write a hardship letter, which is usually written to a mortgage company.

Tips on Writing a Hardship Letter Damage to Property

Your letter should be written formally. It should also be free from spelling and grammatical errors. Hence, make sure that you request someone to proofread your letter before sending it. In the letter, make it very clear what you are requesting specifically. This could be:

  1. Loan delinquency forgiveness
  2. Leniency in payments
  3. A full loan modification

Do also make sure that you indicate what is the financial product that you now have difficulty in paying. This could be a mortgage, but it could also be a car loan, a credit card, or any other financial product. Do also include your account number and personal details so that it is easy for the company to find you.

Avoid Being Emotional

You should then explain that you are currently experiencing financial hardship because of property damage. This is about being factual, not about being emotional. If you have experienced damage as a result of a hurricane, for instance, your creditor knows that you are going through difficulties. They are more interested in hearing how this hurricane has impacted your finances, not how you feel about it.

Be Clear as to What You Are Requesting

You should then make it clear what you are asking for specifically and for how long. If, for instance, you know that you will get back to work after several weeks, then you need to indicate this. If, on the other hand, you genuinely have no idea of how long the hardship will continue, then you must indicate that as well.

Describe the Damage to Your Property

Next, you have to explain the extent of the damage to your property. Make sure that the incident is dated, and that it is clear which property was damaged. Do also make it clear whether or not you have insurance and whether or not they have agreed to pay out on your bills and, if so, by how much. Document this as much as possible, including copies of the letters sent between you and your insurance company, photographic evidence, and so on.

Explain the Amount of Money Required for Repairs

Continue to explain that you currently require as much money as possible to repair or restore your property and that you will be unable to do so if you have to meet your financial obligations with the company you are writing to as well. It is of particular importance that you keep your creditor in the loop, showing how much you have been able to get ahead by not making payments so far.

Hardship Letter Damage To Property Example

Writing A Hardship Letter Medication Cost

Medication is incredibly expensive. And while proper health care has become more accessible since the Affordable Care Act, it still leaves a lot to be desired. Furthermore, with the new Trump Administration, there is a lot of uncertainty in terms of what is and isn’t covered. If you have been prescribed medication, it is possible that you will be in a situation where you cannot afford it. This is particularly true if the medication is a treatment for an illness that leaves you unable to work. If you experience financial hardship, you have the opportunity to write a letter to the drug representative about this, explaining your situation.

Tips for Writing a Hardship Letter Medication Cost

This type of letter is a formal request, so it should be written accordingly. This means that you should address it to the right department and the right person. Your letter should also be dated. In the subject line, explain that the letter is a hardship letter, referencing the name of the drug.

Starting the Letter

Make sure that your letter is straight to the point. Begin by explaining what you want – a percentage discount or even a free supply of a certain drug. State that you have been taking this medication for a specific condition and that it has significantly improved your quality of life. Explain the condition that you have, and what the medication is for. Also explain what would happen should you no longer be able to take the medication. Do also make sure you include information about the dosage and how often you need to take it.

Content of the Hardship Letter

It is very common for people to have to write a hardship letter medication cost after the price of medication goes up. If this is the case with you, make sure to include the date when the cost increased and what the old and new prices are. Explain that the price as it stands is no longer affordable for you, and why. Make sure you include documented evidence of this through a financial statement indicating your income and expenses. Attach pay stubs, Social Security benefit payments, bills, and so on.

Do also explain that you have tried to budget for the medication. Perhaps you have given up on social affairs, you have canceled a television subscription, or other things. Explain that you are still able to pay a certain amount if you are, and indicate that amount. However, be honest with that. It is better to offer nothing than to offer something that you cannot afford. You may also request, particularly if you do offer to pay something, for the price of the medication to no longer go up for you.

Ending the Letter

End the letter by thanking the manufacturer or supplier for their consideration. Keep the letter short and concise. Ideally, it should fit on a single page. Make sure to include photocopies of all your evidence, and that you take a copy of the letter for your own records as well. Lastly, send it through registered post.

Hardship Letter Medication Cost Example

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


Dear {Drug Representative}:

I am writing to request a discount of {percentage} on {medication}.

For the last {amount of time} I have been on {medication}, which I require for {condition}. This is a life-threatening condition, and if I do not take this medication every {frequency}, {consequence} will occur.

As you know, {medication} increased in price from {price} to {price} over the course of {amount of time}. This price is one that I can no longer afford, as you can see from the {pay stubs, bank receipts} that I have attached to this letter.

I am still capable of paying {price} per {amount}, and I would like to ask that that price remain what I am charged.

Thank you for your time and consideration. Please feel free to contact me at {contact information}.

Thank you,

{Sender Name}

Writing A Funeral Cost Hardship Letter

When someone you care about passes away, and particularly if this is unexpected, you may find yourself in shock not just because of the sad passing, but also because of the significant burial and funeral expenses. It is quite common for people to neglect saving up for their funeral, which means that their loved ones left behind have to scrimp and scramble to come up with the money that is required. That said, hardship funds exist as well, so you may want to consider writing a funeral cost hardship letter.

There are a number of different associations that you can write to in order to ask for a hardship grant. These include government employee funds, mutual aid associations, and religious organizations. You will usually have to be a member of these groups in order to apply for them, and they tend to have their own specific requirements in terms of what you should put in the hardship letter.

Social Security

The most commonly used program is Social Security. As a surviving spouse, you are entitled to a lump sum death benefit, which is designed to pay for the funeral costs. You will also start receiving monthly Social Security checks if you are entitled to them. Social Security has standard forms for this.

For Military Personnel

You may also attempt to access the charitable organizations associated with the U.S. Army, Marines, Air Force, and Navy. They each have their own requirements in terms of what you have to supply and demonstrate. Their criteria for economic hardship will also vary. You may also want to consider the U.S. Department of Veterans Affairs. Naturally, these benefits are only available to those who have served in one of those departments.

Special Tragic Circumstances

You may also be classed as having “special tragic circumstances”. For instance, your loved one may have died as the result of a crime, negligence of another organization, or a natural disaster. If so, then you may be able to access crime victim grants through the Department of Justice or your local police department. You can also check out the forms at the FEMA (Federal Emergency Management Association), which has grants available for natural disaster victims.

State Department of Human Services

Different state, county, and city governments may also have grants and funds available to help people cover the costs of funeral expenses. In most cases, you should contact the State Department of Human Services for this. They will supply you with the relevant forms and explain to you how to write your hardship letter. If your loved one, or you, has already received certain state benefits, burial help may be available to you as well.

It is important to learn the guidelines in relation to how much money you can receive towards a burial or cremation. You will usually not receive any of these funds yourself. Rather, they will be paid to the funeral parlor that you have chosen to conduct the service. In most cases, you will have to fill out a reimbursement form with a letter explaining your hardship. Although all of that may sound complicated, don’t worry because help is available.

Writing A Funeral Cost Hardship Letter Examples

{Phone #}


Dear {memorial society/burial claims agency}:

I am reaching out to your {nonprofit/agency} in the hopes of receiving financial assistance relating to funeral and burial services for my mother, who {has died/is dying}.

I’ve spoken with {funeral home} and the director there, {name}, told me about your fund. {Director} is willing to discount fees and is even offering {a casket at wholesale pricing}. However, I will still be responsible for {amount}. Even that is too much for me to absorb. If you’re able to contribute {amount}, that will ease the burden and allow me to participate in the funeral home’s payment plan.

Nearly all of my financial resources have been depleted due to {end-of-life care/taking time off work/etc.}.

Please consider assisting me in honoring my mother’s wishes for a funeral and traditional casket burial.


{Sender Name}

Writing A Hardship Letter Adjustable Rate Mortgage Loan Modification

When you write an adjustable rate mortgage loan modification hardship letter, you are formally requesting that the terms and conditions of your loan be changed. The letter is an opportunity for you to highlight your financial difficulty and to attempt to get better terms and thereby avoid a foreclosure. Remember, however, that lenders are not interested in life stories. All they want to know are the facts that surround your current situation.

Key Reasons for Writing the Hardship Letter

There are two key reasons why you may want to send this letter: medical issues and job loss. In addition, some lenders will accept death of a spouse, divorce, military duty, a newborn child, and relocation. Sometimes, they will even accept a failing or failed business. However, they are unlikely to assist if there isn’t a benefit in it for them. Lenders don’t generally want to repossess properties, which means they will want to avoid foreclosing the property as well. Hence, if you can explain that you don’t want to get out of paying your debt, but that you simply need some help, you have the best chance of being accepted.

Basic Rules in Writing the Hardship Letter

Make sure that your letter comes across as positive. They want to see that you are a responsible borrower who wants to do the right thing. Hence, you should be matter of fact about your situation and about what you have done and are doing to stay on top of your bills. You have to be able to prove everything that you state as well, so do make sure to show some documents.

The letter is perhaps the most important thing in this entire process. Hence, you need to make sure it includes all pertinent details:

  1. Why you are behind in your payments
  2. When you first fell behind
  3. When and how you expect your situation to improve
  4. What kind of modification are you asking for
  5. How much you are able to pay each month, if anything
  6. Whether you are seeking treatment if the difficulty is due to an addiction

The letter must be signed by you, even if you have asked a consultant to write it for you. You also have to make sure that it is a genuine letter, and not simply a template with some details changed. You should not include a lengthy narration of your situation, nor should you exaggerate your situation. Be to the point and honest instead.

Finally, remember that this is a formal letter. Hence, address it to the right person in the right format. The subject line should include your reason for writing, as well as your account number. You should also make sure that there are no grammatical or spelling errors in the letter, so proofread it or ask someone to do that for you. You should also try to have all the information on a single page. Longer letters are more likely to be dismissed, simply because hundreds of them are received every week and lenders have a limited time in which to read through all of them.

Hardship Letter Adjustable Rate Mortgage Loan Modification

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


To Whom It May Concern:

I am writing this hardship letter to request a loan modification. My financial situation cannot currently accommodate the adjustable mortgage rate that is being asked of me.

For the last {number} years, my mortgage has been billed to me at a fixed rate of {amount} per {time}. As of {date}, however, the amount due jumped to {amount} per {time}.I understand that I entered into an adjustable rate contract, and originally I had a financial plan that was flexible enough to meet the projected expense. Unfortunately, new circumstances have drastically depleted my funds, and I find myself facing foreclosure if I cannot meet the new payments.

My finances have changed due to unexpected {medical bills, job loss, etc. Be specific.} While I could afford the fixed rate, this new expense is too much for my limited account. I have attached last year’s federal income tax return and my credit card bills from the last two months. Also included is a worksheet detailing the dispersal of income among essential payments.

I would like to request a return to my former fixed rate, which is still a payment I can afford. If that does not work, perhaps we could come to terms on a deferral plan or a principal loan reduction.

I hope to avoid foreclosure at all costs. Please contact me as soon as possible so that we can work out a payment plan.


{Sender Name}

Writing A Hardship Letter To Doctor

Health care is indeed expensive and doctors are often busy. In many cases, only those with significant funds and some sort of private health insurance are able to get the treatment that they need, when they need it. If you are in financial hardship, then it is likely that you will find it particularly difficult to obtain the medical care that you require. If this is the case for you, and you have been denied an early appointment with a specialist, you may consider writing a letter to have that decision reconsidered.

Basic Guidelines for Writing a Hardship Letter to Doctor

Hardship letters are usually quite formal pieces of writing. When writing to a doctor, however, it is often better to become somewhat more personal. That being said, you should still make sure that your letter is properly presented and addressed, that it is dated, and that it includes all the important information that the doctor may need.

Starting the Letter

You should start by explaining that you had requested an appointment, but that you have not been granted one before a specific date. Make sure to include the date on which you requested an appointment, the date on which you received a decision, and the date on which the appointment is offered.

Content of the Hardship Letter

Next, explain why it is important for you to see that specific doctor. He or she may, for instance, be the only specialist in a certain field within a certain geographical area. Explain that you are aware of this because you have already seen other physicians but the treatment you received were not successful for you. State that you feel that the said doctor would be the one to be able to provide an accurate diagnosis, or who would be able to provide appropriate treatment. Flattery can help here, although you do have to make sure that you don’t lay it on too thick at the same time.

Explain that your condition is life limiting, and that, should you have to wait for an appointment, it may get much worse. Do not be afraid to explain that you feel desperate and that your hopes are pinned on this particular doctor. If such is the case, emphasize that your illness has also prevented you from being productive, and that waiting for such a long period of time will make it impossible for you to continue to pay all your bills as well.

Ending the Letter

Do also state what you would be willing to offer the physician in return. Your case may be particularly interesting, for instance, and you may be willing to let your details to be shared with medical students. Physicians are always interested in unique cases, after all.

Finally, make sure that you send the letter via registered mail, and indicate that you will follow up by a certain date over the telephone to confirm not just receipt, but also whether you can indeed have an earlier appointment with the doctor. Do also include any evidence you have to support the things you have stated before.

Hardship Letter To Doctor Example

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


Dear {Doctor}:

On {date}, I was informed by your staff that you have no openings over the next {amount of time} and that you can’t schedule an appointment with me until {date} at the earliest. I am writing to beg you to reconsider.

I know that you are the only medical doctor focusing on {field} in a {number}-mile radius. I know this because I have been to every general physician in the area, and it is my sincere belief that you are the only person who can help treat me, or even tell me what, precisely, is wrong with me. I’m not an impatient person, but I’m afraid that if I have to wait {amount of time}, my condition will have worsened to the point of severe illness or even death. I admit that I’m afraid and even desperate at this point to get answers that will help me.

If there’s one thing I can offer you, it’s the guarantee that you will find my case unique and medically relevant to your research into {field}. {Brief medical history}. I have been to {list of other doctors/clinics} and no one can help me. I am happy to come in at any time you can fit me into your schedule, and I will try not to take up too much of your time.

I will call your office again next week. I’m so sorry to be an inconvenience, but I hope that we can find a time to meet very soon.

Thank you,

{Sender Name}

Writing A Hardship Distribution 401k Letter

Some people may realize at some point in their life that they need to make use of their retirement savings in order to meet their financial obligations. By opting for an early 401k withdrawal, they are often able to stay afloat just long enough to get back on their feet. To do this, they must write a hardship distribution 401k letter. The steps in writing it are described below.

1. Meet the Relevant Criteria

The IRS (Internal Revenue Service) will only accept an early withdrawal if the account holder can demonstrate “immediate and heavy financial need“. This means that it must be used to pay for funeral expenses, repairing extreme property damage, stopping an eviction, paying for educational expenses, buying a primary residence, or medical care. Details are listed in Reg. 1.401(k)-1(d)(3)(1).

2. Format It Properly

Next, speak to your broker or HR department to ensure that you are addressing the letter to the right people. The document you write should be free from spelling and grammatical errors. It should highlight your personal details, as well as your account number. Do also complete some online research for samples of opening sentences.

3. Draft Your Letter

Your letter should start with an explanation of your circumstances. Include any evidence of this as attachment. Explain why the only recourse you can see is an early withdrawal. Be specific about the amount and state that you know the consequences of doing this. Make sure to include any dates on which you have missed payments as well.

4. Edit Your Letter

As much as possible, your letter should be no longer than one page. Your desired outcome should be one of the first things that you mention. Take out any of the details that were added in the draft that are obvious and make sure to stick to facts and avoid showing any emotion.

5. Proofread and Send the Letter

One you have edited your letter, you need to proofread it. If at all possible, you should ask someone else to do it for you. If not, leave the letter overnight and read it the next day. Read it aloud as well, to make sure that it sounds right. Include all the relevant attachments and make sure that you photocopy everything. Date your letter and send it, and make sure that you request a return receipt.

6. Follow Up

Do not accept silence as a response to your letter. Call your fund manager, your contact in HR, or your broker after a week, even if it is just to make sure that the letter has been received. Make sure that you have also consulted with your tax preparer or accountant. This is all about being proactive and understanding what is going to happen next. If your request is accepted, for instance, you may not be able to contribute to your plan for between six months and a year.

There are never any guarantees that a hardship letter will be accepted favorably. However, with these tips, you may greatly increase your chances. Do remember that withdrawing from your retirement account should be a last resort only.

Hardship Distribution 401k Letter Example

{Phone #}


Dear {fund manager}:

Due to immediate and heavy financial need, I must now apply for hardship distribution of funds in my 401(k), as allowed under IRS “safe harbor” regulations.

I am now responsible for {medical expenses/purchase of a principal residence/mortgage payments/tuition/repairs to my residence/funeral expenses}. These costs far exceed the amount of cash or credit I am able to access.

I am seeking to withdraw {amount}, which is only the amount necessary to satisfy this immediate need. I cannot obtain funds from any other source or by liquidating assets.

I understand that I will be taxed on the amount distributed and that I may face additional related taxes.


{Sender Name}

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}