What is a Hardship Letter?

A hardship letter is a document that outlines a person’s difficult financial situation and is written to request financial assistance or relief. Hardship letters are often written to lenders, creditors, and mortgage servicers in order to request a loan modification, forbearance, or another form of relief. It is important to note that while a hardship letter is a formal document, it should be written in a relaxed and conversational tone.

Why is a Hardship Letter Important?

Writing a hardship letter is an important step in requesting financial assistance or relief. This letter provides an opportunity for the writer to explain their financial situation and why they need help. By writing a well-crafted letter, the writer may be able to increase their chances of getting the help they need.

How to Write a Hardship Letter

1. Create an Outline

Before you begin writing your hardship letter, it is important to create an outline of the points you want to make. Writing an outline will help ensure that your letter is organized and clear. Additionally, it will help you stay on track while writing.

2. Explain Your Financial Situation

The first part of the letter should explain your financial situation. Include any relevant details such as the amount of debt you have, your income, and any other financial issues you are facing. It is important to be honest and forthcoming in this section. Provide as much detail as possible, but also be sure to keep it concise.

3. Describe Your Request for Assistance

Once you have explained your financial situation, it is time to describe your request for assistance. Clearly state the type of relief you are looking for, such as a loan modification, forbearance, or another form of relief. Be sure to include any details that will help the lender understand your request.

4. Include Supporting Documents

Along with your letter, you should include any supporting documents that demonstrate your financial situation. This could include income statements, bank statements, and other documents. This will help give the lender a better understanding of your situation.

5. Close the Letter

Once you have finished explaining your financial situation and requesting assistance, it is time to close the letter. Thank the lender for their consideration and provide your contact information. This will make it easier for the lender to contact you if they have any additional questions.