How to Write The Best Hardship Letter

How to Write The Best Hardship Letter
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Hardship letters come into play during the loan modification process. Lenders want you to document the exact reasons that you came into your hardship and how you are planning on getting out of the problem. The best hardship letters also outline what you want from the lender. You want to write the best hardship letter possible to stop foreclosure and modify your loan so you can keep your home.

Format the letter with the date, your lender's name, the loan professional and your lender's address. Insert a few spaces and then place your name, address and your loan number. Address the letter to the loan professional with whom you have been working.

Type up the first paragraph explaining the purpose of the letter, such as that you are seeking a loan modification or that you are submitting an explanation of the circumstances surrounding your default.

Explain the circumstances that led to your hardship. Banks typically consider hardship letters when the reason is loss of income, illness, job relocation, death of spouse, military duty, divorce, medical bills or damage to the property. Lenders are looking at circumstances that were out of your control.

Describe the plan you have set out for getting back on track. This includes increasing your income or reducing your expenses. You want to convince your lender that you have a reasonable plan to get your finances back on track and that its loan modification plan won't go to waste.

Attach supporting documentation such as pay stubs, bank statements, a budget or your medical bills. Mail the hardship letter to your loan professional.


  • Keep it brief. Most hardship letters should be less than three pages.


  • Be truthful about your situation. Do not attempt to place blame on the lender. You are asking for its help in keeping your home.