Mortgage Hardship Letter

Mortgage help begins the moment you submit a mortgage hardship letter.


to stop foreclosure or obtain a mortgage solution you need to write a mortgage hardship letter.

Not being able to pay your mortgage and other bills can be a lonely, scary, and at times unbearable. I know you may feel like giving up and I know it’s not easy. Please listen to me when I say You are not alone and It’s going to be OK. Millions upon millions of homeowners have been in your shoes in recent years and tens of thousands are in the same predicament at this very moment. Though many home loan borrower circumstances are similar, the exact reason and personal events that leads each homeowner to the place where they can not afford to pay their mortgage is their own individual financial hardship.

To obtain any sort of loan help, your mortgage servicer will request a financial hardship letter. Thus it is important that you both understand how you fell behind on your bills and perhaps even more important, that you are able to effectively explain the exact nature and events that have caused you to default on your mortgage and then why you need to lower your monthly loan payments by modifying, refinancing, or other financial assistance program and make home affordable.

How to Write a Financial Hardship Letter

  • Set Aside Time Space and Peace of Mind

Get in the right mind set before you begin to write your letter. You are writing this letter to a party that is owed quite a bit of money from you. They have the ultimate power, and final say. You are asking them for help, they do not have to help you find a mortgage work out agreement that will allow you to keep your home or avoid foreclosure. So be calm collected and professional.

  • Use a Template to Start

I suggest that you use a mortgage hardship letter template. I have made one here at the bottom of this page which you can reference. Also many lenders may now have hardship forms so be sure to check. For example the Obama loan modification program has a hardship affidavit you should use.

  • Keep it Simple and Straight Forward

Don’t write a biography. Follow the template below and write plainly. For example If you lost your job, just state that you lost your job in one sentence. Don’t go into detail. Don’t write more than one page.

  • Know the Lender Motives

keep in mind that they don’t want your home just their money. So if a plan can be worked out they will work with you. If you can afford a reasonable payment now, communicate that to them in one or two sentences. If they have questions they can ask later.

The Effective Mortgage Hardship Letter

To write a solid hardship letter you need to communicate the exact past events and current nature of your hardship as clearly, concisely, and effectively as possible.

Not all hardship letters are created equal. There are some important aspects and notions of writing and submitting a mortgage hardship letter that will allow you to write the most effective letter you can.

Helpful Mortgage Hardship Letter Submission Tips

  1. Type the letter instead of hand writing one.
  2. Use a hardship letter template or sample.
  3. Utilize a professional format.
  4. Submit the letter by email fax or just plain email if possible. This is a much more reliable way to submit a document and is much less likely to get lost or warped in the submission process.
  5. Verify the letter has been received.
  6. Inquire about any preferred formats and or methods writing and or submitting a hardship letter.
  7. Keep the letter short, professional, and concise.
    Proof read the letter before you submit it.
  8. Check for unnecessary  content. Remember that less is more in some respect. The letter should be detailed but to the point and concise
  9. Make sure contact info is accurate and that you are reachable by the use of that contact information.

Hardship Letter Template

Use a template when writing your hardship letter like the one below.

(Date Here)

(Name Here)

(Address Here)

(Contact Info Here)

(Lender Name)

(Loan Number Here)

To Whom It May Concern:

This letter is to convey and clarify the exact nature of our financial hardship and the reason we have defaulted on our home loan. We apologize for the inconvenience we have caused (Lender’s name). Please understand that we have every intention of working through our current financial troubles.

The hardship, catalyst, and reason for the missed payments is as follows; (Reason here. Get to the point and move on). These events have caused us to fall behind.

We have done everything we can to curb our spending habits, improve our budget, and increase our household income. We are humbly asking for your understanding, help, and assistance to allow us the opportunity to keep our home and make home affordable.

We think that a loan modification or some other form of mortgage workout can resolve this situation.

Let us be perfectly clear, our number one goal is to keep our home. We would really appreciate the opportunity to do that. We are committed to you and this process. We will assist you any way we can.

Sincerely and Respectfully,

(Borrower Signature Here)

(Date Here)

(Co-Borrower’s Signature Here)

(Date Here)


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