Hardship Letter Examples – First Rate Financial Hardship Letter Examples

| April 24, 2012 | 1 Comment

Our hardship letter examples can be used to explain to a financial company or bank why you are having trouble making your loan or mortgage payments. It is always best to get the assistance of a legal expert or lawyer when composing a financial hardship letter, but those experiencing hardship often cannot afford to go that route. In such cases it is better to write on your own behalf rather than take no action at all. Financial institutions appreciate that sometimes people fall on guard times and are happy to work with them to adjust their payments. If you are in such a position, take the first step to alleviating your hardship by using one of our hardship letter examples.

How to Make the Best Use of Our Hardship Letter Examples

Our hardship letter examples are based on the guidelines of the National Consumer Law center. They are designed so that you can easily edit them on your home computer, replacing the text in the examples with your own information. First however, it is best to get a clear appreciation of what to include, and what not to say, as well as hot to format your letter.  The most effective way to do so is to break down one of our hardship letter examples into sections, and analyze it in a step-by-step process. As important as what you say in the letter is how it is formatted.

The Format of Our Hardship Letter Examples

Our hardship letter examples are all professionally written and formatted in a clear business manner. The block style is used, with all of the text positioned to the left side of the page. Rather than begin with your name address and contact information however, our hardship letter examples begin with the date, followed by the name and address of the recipient. It is best to address the letter directly to the person who handled your initial loan or mortgage application. If they are no longer working at the company, try to find out who is now overseeing your account. If you don’t have the name of an individual, address your letter to the loan or credit department of the institution. It should look like this:


May 17, 2001

Mrs. Rosemary Harrison
Loan Officer
More Mortgage Company
32 Main St.
Manchester, NH
007842

It is at this point that our hardship letter examples state the senders name and address, along with their loan or mortgage account number.

RE: Mr. and Mrs. William Smith
54 Elm Avenue,
Plaistow, NH
007453
Account Number: 45007239

We try to keep the body of our hardship letter examples brief and to the point. Rambling, vague letters will be ineffective and a drain on the person reading it. People who work in financial institutions are extremely busy, and they will appreciate clarity and directness. Immediately get to the point of the letter and let the lender know you are requesting their assistance to remedy the situation, and that you are willing to work with them to do so.

Dear Mrs. Harrison,

This letter is to request a modification to our loan payment plan. We have been living in our home for more than 10 years now. We worked hard to get it, and we are willing to work hard to keep it. We feel that with some modifications to make our current mortgage affordable we can get our monthly payments back on track. 

In the next paragraph or two explain your situation. Be brief, but clear on the exact reason that caused you to fall on hard times.

Recently my husband William was laid off from his position at Concrete Industries due to the slow down in the construction business. The lay off came suddenly and unexpectedly, and we have had a difficult time facing our debts. We have never before been in financial difficulty, and it has been hard meeting the expenses involved in maintaining a household.

The compensation my husband receives after ten years with his former employer is only 60% of what his income was. Though I have been able to increase my hours as a nursing assistant, our total income is still not enough to meet our current payments. We are delinquent in our payments from December 2000, the partial payments we made were returned by you.

Next you can add any additional special circumstances or effects losing your home could have on you and your family.

We are parents to a child with a learning disability who attends a special program at his school. If we are forced to leave the neighborhood (and hence the school district – there are few properties for rent in the area) because of losing our house, our doctor has warned that it could impede Danny’s development. 

The next phase of our hardship letter examples offers up a solution to the situation. Take some time to work out how much you are able to pay, and cite the exact amount. Be convincing by showing them you have taken the time to come up with a plan that will work.

Recently William was able to secure part time work with an established construction firm. The work he will be doing is primarily inside so there will be no work stoppage next winter. Although it doesn’t pay as much as his previous jobs, our combined income is now 90% of what it was prior to his lay off. 

Since he began in March we have managed to save the partial payments that were returned to us ($2,390), and additionally have set aside a further $1,750). With our savings and combined income we would be able to pay the amount of $780 per month until the mortgage is paid in full. 

Finally you can express your thanks for their understanding, include any financial statements you may have, and leave the door open for them to contact you. Your completed letter will look like this:

May 17, 2001

Mrs. Rosemary Harrison
Loan Officer
More Mortgage Company
32 Main St.
Manchester, NH
007842

RE: Mr. and Mrs. William Smith
54 Elm Avenue,
Plaistow, NH
007453
Account Number: 45007239

Dear Mrs. Harrison,

This letter is to request a modification to our loan payment plan. We have been living in our home for more than 10 years now. We worked hard to get it, and we are willing to work hard to keep it. We feel that with some modifications to make our current mortgage affordable we can get our monthly payments back on track. 

Recently my husband William was laid off from his position at Concrete Industries due to the slow down in the construction business. The lay off came suddenly and unexpectedly, and we have had a difficult time facing our debts. We have never before been in financial difficulty, and it has been hard meeting the expenses involved in maintaining a household.

The compensation my husband receives after ten years with his former employer is only 40% of what his income was. Though I have been able to increase my hours as a nursing assistant, our total income is still not enough to meet our current payments. We are delinquent in our payments from December 2000, the partial payments we made were returned by you.

We are parents to a child with a learning disability who attends a special program at his school. If we are forced to leave the neighborhood (and hence the school district – there are few properties for rent in the area) because of losing our house, our doctor has warned that it could impede Danny’s development. 

Recently William was able to secure part time work with an established construction firm. The work he will be doing is primarily inside so there will be no work stoppage next winter. Although it doesn’t pay as much as his previous jobs, our combined income is now 90% of what it was prior to his lay off. 

Since he began in March we have managed to save the partial payments that were returned to us ($2,390), and additionally have set aside a further $1,750). With our savings and combined income we would be able to pay the amount of $780 per month until the mortgage is paid in full. 

Thank you for understanding our position, and please let me know if these conditions are acceptable toy you. I have included copies of our monthly bills and an expense report prepared by our foreclosure prevention consultants Home Savers so that you can see we have made every effort to minimize our spending.

Sincerely,

Mrs. Wanda Smith

Remember to include your current contact information, and include every bit of financial information as you can in your hardship letter. Examples would be; tax returns, copies of paychecks, bam statements, copies of utility bills, other loans etc.

Download This One of Our Hardship Letter Examples and edit it to include your personal information.

Tips and Useful Sentences you Can Use with our Hardship Letter Examples:

  • Make sure you show that you are resolved to rectifying the situation. Be convincing and clear, including exact figures, dates etc.
  • Make sure you state a valid reason for delinquency in your hardship letter. Examples of good reasons are – medical condition, salary decrease, job loss, single parent.
  • Do not use excuses such as: divorce, legal problems, you spent too much on a holiday.

Tags:

Category: Hardship Letter Examples

About the Author ()

Melanie Walters is a writer and editor for several businesses both online and offline. Her experience with writing business letters and marketing materials has helped her understand exactly what works in written communication for businesses. In the 10 years she's been writing, Melanie has amassed a large collection of letter examples that she gladly shares with you here on Letter Example Help.org

Comments (1)

Trackback URL | Comments RSS Feed

  1. Linda Albert says:

    I visited your website and the content turned out to be very useful.

Leave a Reply