Sample Hardship Letter

A hardship must be something that has been out of your control that has forced you into a financial corner. Medical issues, job loss, death in the family are examples of hardships. If you are searching for the answer of question “how to write a hardship letter” we shall provide you all necessary information regarding it.
Some sample hardship letters are also given below that will help you in customizing your hardship letter according to your own needs. Following are the important tips to write a hardship letter;

  • Determine the tone of letter first of all.
  • Consider that you are writing to a person who has not committed any mistake, mistake was from your end so you need to write letter in friendly tone.
  • A reality that you need to keep in your mind that lenders do not care about any person’s situation. They care for their money and nothing else.

Simply stating that you have gone through some financial problems is not enough.

  • The basics of the letter are anything out of the ordinary that would be causing you financial distress.
  • Explain why it is not possible to comply with the original terms of the agreement, and request modification of the obligatory terms until your financial situation improves.
  • You also must convey that the hardship you went through is in the past and they you now can afford it.
  • Your letter needs to be sent to the collection agency and convince the original creditor cut you some slack.
  • You need to consider following approach in writing a hardship letter;
  • Your hardship
  • Your offer to resolve your debt
  • Thanking them for their time
  • Your current contact information
  • Your name, address and postal code should be mentioned in the start.
  • Date of the letter should also be there at the top.
  • Words like “Dear Sir / Madam” should be used in formal letters.
  • State the main line clearly in direct approach.
  • Requirements of all Seven C’s of business communication should be considered when writing a Cancel Service Letter.• Conciseness and Clarity
    Beauty of writing is hidden in conciseness. The letter should be stated in as few words as possible but it should communicate the whole message as well. Conciseness does not mean that in trying to write a short letter, you forget to include theme of the message. Your letter should be written in simple and easy language that can be understood by a normal person having no specialized background. Technical jargon should not be used in a business letter.

    • Completeness and Concreteness
    Your letter should be complete enough to provide all necessary information to the recipient to take action. Make sure you have included the answers of all W’s in your letter i.e. Who, What, Why, Whom and How. All the facts and figures should be included in the letter. For example it is better to say that “oil prices are increased by 15% in last one year”, rather than saying “oil prices increased rapidly last year.”

    • Courteousness
    In business communication, you cannot give away courteousness. So you need to be courteous and polite in your approach irrespective of the fact that your recipient is your customer or your service provider, your employer or your employee. But politeness odes not mean you accept every thing of the other person. You should be firm on your points.

    • Consideration and Correctness
    Consideration means considering recipient of letter in a letter. You need to focus on “You” approach. It is better to write “you will be pleased to know that” rather than writing “we are pleased to inform you that”.

All the information provided in your letter should be correct. There is no margin of mistake in business. Mistake means you are loosing some monetary value. It also gives a bad impact if you say something wrong. Wrongly adding something in your letter has a negative impact on your goodwill as well.

  • At the end mention your name along with signatures.
  • Handwritten signature should be there in your letter.
  • Proofread your letter at least once.
  • Be sure you have spelled everything correctly.
  • Check the punctuation use carefully.

Here are some Sample Hardship Letters:

Sample Hardship Letter

Your Name:
Address:
City:
Phone Number:
Postal Code:
Email Address:

Date:

Name of Recipient:
Address:

Name of Organization:
City:
Phone Number:

Dear Sir/ Madam,

Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2008.

Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default and help stop foreclosure on my home.

Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change is postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.

I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.

The main problem is that my property is now worth about 5-10% less than what I paid for it which is preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications.

I believe this addresses the situation I currently find myself in along with many other homeowners. Attached are recent pay stubs showing my current income?

Thanks you for your time and consideration.

Yours sincerely, / faithfully

Name

Signature

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Sample Hardship Letter

Your Name:
Address:
City:
Phone Number:
Postal Code:
Email Address:

Date:

Name of Recipient:
Address:

Name of Organization:
City:
Phone Number:

Dear Sir/ Madam,

Since last (month), I am experiencing financial difficulties due to (layoff, medical problem).

After having my current financial situation carefully analyzed, I have concluded that it is no longer possible to comply with the original terms of the agreement. I have no choice but ask you for your help on avoiding the foreclosure of my family’s home.

Due to the dropping of home prices that have affect the entire country in the last year, I currently owe more on my mortgage than my home is actually worth.

Please consider allowing me into your Short Sale Program so that we can lower the price and sell the house quickly before it goes into foreclosure. This will allow me to settle my financial obligation to you and have a chance to get back on my feet, without having to file for bankruptcy.

Please understand that financial hardships can occur and many times it‘s not a choice. I deeply appreciate your help in this matter. If you have any questions, or need anything further from me, you can contact me at (your phone # with area code.)

I am enclosing my (bank statements, late notices on your car, last year’s tax returns, last 6 months of Profit and Loss statement (if self employed), last 2 pay stubs for all working borrowers (including L&I and unemployment benefit.) Authorization to disclose personal information and anything else you can find that will show full proof of the hardship)

I, (your name), state that the information provided above is true and correct to the best of my knowledge.

Yours sincerely, / faithfully

Name

Signature

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Sample Hardship Letter

Your Name:
Address:
City:
Phone Number:
Postal Code:
Email Address:

Date:

Name of Recipient:
Address:

Name of Organization:
City:
Phone Number:

Dear Sir/ Madam,

I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.

The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.

(The approximate date of hardship and we believe that our situation is Temporary or will be Permanent.)

Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.

We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.

Yours sincerely, / faithfully

Name

Signature

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