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.



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.