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How to Write a Hardship Letter

A well written and to the point hardship letter is a fundamental tool to start the communication between homeowners and mortgage lenders.

A letter of hardship should be written by the owner and designed to renegotiate delinquent debts by offering or asking for a solution that will help save the property from foreclosure.

In your letter you must explain the situation you are in, including all the things that have happened that may have contributed to your current economic condition and reason why you are no longer able to make the full mortgage payment.


The reasons could be:

  • health issues/sickness
  • job loss or transfer
  • death of family member
  • natural disaster
  • salary/income reduction
  • rising mortgage payments
  • divorce or separation

Make sure the information you provide is backed up by documentation and numbers.

Creditors are not very interested in hard-luck stories that cannot be documented. The more information you can provide, the easier will be for your creditors to agree with the re-negotiation.

Provide an explanation of what will happen if a deal is not reached. (i.e. abandonment of the property by the owner and/or foreclosure sale...)

Mention when the hardship occurred and if it is temporary or permanent. If temporary, provide the estimated time-frame the hardship will last.

The hardship letter may contain your feelings and emotions concerning the situation. It's okay to make it personal and heart-breaking. Remember that it is another person that will be reading it and making the decision about the process, not a computer or machine.

Signed by the Borrower and Co-Borrower.

The economic decline is impacting everyone, from business to homeowners. Be respectful and never lose your temper when talking to the loss mitigator who is handling your case.

And finally, be honest about your misfortunes. People who lie in order to obtain a loan modification, short sale or re-financing may be charged with a criminal offense.

Free Letter of Hardship Sample
Free Promissory Note Template
Sample Repayment Agreement
Debt Negotiation Technique

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DISCLAIMER: provides internet content that is designed only to entertain and inform and is not to be considered professional law/legal advice. Consult a licensed attorney or law firm in your State of residence who will advise and answer all your questions and concerns about any legal issues you may have.

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