How to Write a Hardship Letter to a Loan Company
- 1). Begin your letter with an introduction that tells who you are and when you purchased your home. Introduce the environmental changes that led to your dire financial circumstances in the first paragraph of the letter. For example, significant technology changes within your industry may have led to furlough and substantial salary cuts for many employees.
- 2). Detail how the changes in the circumstances around you led to your hardship in the second paragraph. Include the exact date you fell behind on payments and your attempts to remedy your financial hardship. If you do not know the exact date, enter the month and year. Indicate whether your situation is permanent or temporary. If it is permanent, present mortgage assistance solutions to help you avoid foreclosure, refinancing of the balance at a lower interest rate, for example, or modification of the loan by extending the term.
- 3). Explain in further detail about your circumstances and why mortgage assistance will help you gain financial stability. Provide a copy of your monthly household budget. Make a copy of your recent bills and pay stubs to accompany your letter.
- 4). Sign and date your letter. If you have a co-borrower, have that person sign and date the letter. Send the letter and accompanying documents to the lender by fax or certified mail. Most lenders take between six and eight weeks to respond to a hardship letter.
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