hardship letter sample can explain when circumstances cause severe discomfort or lack of necessities of life and requires great effort to overcome.

Having a hard time keeping up with your financial obligations?

Financial distress is affecting virtually all of us these days.

It may be a good time to open up negotiations with your creditors. A well-written sample hardship letter is the first step to begin negotiating a short sale, home foreclosure, refinancing loan option or creating a payment plan for those credit card bills you need to settle for less.

A hardship letter sample is often used to explain to your creditor about your economic setback and the reasons why you are no longer able to keep up your financial obligations.

Hardship letters are intended to be used as the first step in a debt settlement negotiation with your creditor.

These type of letters are being used today by people of all walks of life from homeowners to executives.

In addition to the different forms each lender require, they also generally need:

  • Two months of bank statements
  • Most recent pay stubs
  • Two years of past tax returns
  • A hardship letter
  • When writing the your letter...

Explain the circumstances that led to your inability to make payments or to pay off the loan in full. Such as: loss of employment, loan adjusted, medical condition, or a combination of factors.

It is important for the bank to know what you did to try and solve the problem, like borrowed or accrued other debt to keep current on your mortgage.

Be sincere and truthful. Banks may choose to check out any and all claims made by you.

  • Paperwork often gets lost. Don't forget to include the loan number.
  • For short sales: bring the purchase and sale agreement.
  • Offer a solution for the problem.

Short sale is when a lender agrees to take a discount on the loan of a property that is being foreclosed. Some banks will not agree with the discount, but most lenders actually encourage borrowers to work out a short sale rather than going through the full foreclosure proceedings.

Lenders require a hardship letter for most real estate short sales to get approved.

Here you will find some free sample letters that can be used as an example. So, you will have an idea how to draft the letter to fit your own situation.

Use Hardship Letter Sample as a guide only, deleting any information that does not apply to your situation and adding your personal information as needed.



Mr. John Smith (Company's representative)

My Home Loan LLC (Company's Name)

1234 Financial Street New York, NY (Company's Address)

1 800 555 6789 (Company's phone #)

RE: (your home address)

Account number:

Dear (Mr. Smith:)

I am writing this letter to ask you to give me the opportunity to renegotiate our home mortgage. Kepping our family's home is our number one priority at this time.

In recent months, I've fallen behind on my mortgage and personal loans because (explain the circumstances how you have fallen into financial hardship...)

In the effort to make ends meet, we have even organized a garage sale for some of our furniture, personal property, and other items.

I want to take this opportunity to ask for a loan modification under the new stimulus program by the federal government. It is my true belief that I will be able to afford a lower mortgage payment and keep my family in our home.

Enclosed, please find documentation that will prove my current economic hardship. (Attach mortgage payments, medical bills, paycheck stubs, social security disability, welfare...)

If all our efforts to keep our home failed I hope we can avoid foreclosure and work out a short sale of our beautiful, nicely kept home, so a new family will have the chance to enjoyed it.

Please reply to this letter at your earliest convenience, so we will know what steps to take from now.



(Homeowner’s Name)

(Co-signer Name)

(Homeowner’s Address)

(Homeowner’s Phone)

Hardship Waiver Request - IRS 

Health coverage exemptions: Hardship 

If you like this Webpage, please Tweet it, Like it, Plus it, or best yet, LINK to it from your Blog or Website. Thanks!

DISCLAIMER: The we content provided by is intended for informational and educational purposes only. The law will vary depending on the specifics of each case, jurisdiction and state of residence. The content on this website should NOT be considered professional legal advice or a substitute for professional legal advice. For such services, we recommend setting up a free initial consultation by a licensed attorney in your State.

Copyright © 2020 - All Rights Reserved.