How to Type a Hardship Letter

When requesting a loan modification or a redrawing of your loan contract because you are having trouble paying the loan, one of the things your lender will ask from you is a hardship letter. This letter is designed to explain the reason or reasons for your inability to pay your loan. It is a vital record that can help prevent foreclosure or other adverse effects of nonpayment. In your letter you must explain to the lender why you need to modify the loan so that you can continue paying consistently.

Instructions

1

Type your name at the top left-hand corner of the paper. The margins should be set at an inch all around. Directly below your name, type your address, then add a line of blank space below it. Under that line, type in the lender's name and address.

2

Skip a line below the lender's address. On the line following, type "Loan :" and then type in your loan number.

3

Put a line below the loan number. Below that, put your salutation. You can write "To Whom It May Concern" if you don't know whom the letter will go to or "Dear Mr./Ms." then his or her name followed by a colon.

4

Skip a line below the salutation and begin your letter. The first paragraph should introduce why you're writing the letter. Tell the lender that you have tried everything to stay afloat but unfortunately have fallen short or will fall short soon. Ask the lender to consider working with you to modify the loan and stress that your first priority is to keep in good standing with payments.

5

Put a line between the first paragraph and the following paragraph. This paragraph should detail the reason for falling behind. Make sure that this part is short and to the point. Tell the truth and emphasize that the only way to keep on paying is to modify the loan. Acceptable reasons for financial hardship include job loss, illness, death, incarceration, divorce, reduced income, military duty and medical bills. Remind the lender that you have exhausted all your income because of your stated reasons.

6

Skip a line and begin a new paragraph stating when the hardship started and whether you believe the hardship is temporary or permanent. With either case, stress that you want to pay back your financial obligation and that you want to work with the lender to make that happen.

7

Skip another line and close with a paragraph saying that you are hopeful the lender will work with you and that you are eager to begin the process.

8

Skip another line and type a closing, such as "Sincerely" or "Respectfully" or "Kind regards," followed by a comma. Directly below that, insert two blank lines, where you later can sign your name. Under that space, type out your name followed by a comma and the date. If there's a co-borrower, put two spaces below your name for his or her signature and below that, type his or her name followed by a comma and the date.