Sample Reasons You May Need to Write a Letter of Hardship
If you find yourself in an unexpected financial situation, unable to make your mortgage, credit card, or other loan payments, you will likely need to write a letter of hardship as part of your efforts to avoid foreclosure or repossession. There are circumstances in which a lender will work with you to modify the loan or approve a short sale, for instance, but your letter of hardship will be an important part of that puzzle. Bear in mind, though, that lenders might not care about some reasons why you end up in a hardship situation.
The following are generally accepted reasons for needing a loan modification:
If your reason is not on this list, you may still be able to convince a lender that you are unable to continue to make payments. Remember that a letter of hardship is only one part of this process; the real key will be providing enough documentation to the lender to prove that your income does not allow you to continue to make payments on your loan.
Index of Hardship Letter Examples