How to Write a Hardship Letter: What to Include
Navigate writing a hardship letter with clear guidance on effectively communicating your situation and requesting support.
A hardship letter is a formal request to a creditor or lender, explaining a difficult financial situation and seeking assistance. Its purpose is to provide context for an inability to meet financial obligations and open a dialogue for solutions like modified payment plans or temporary deferrals. This letter is a proactive step in addressing financial challenges.
Key Components of a Hardship Letter
A hardship letter should clearly identify the sender and recipient, including names, addresses, account numbers, and contact information. The opening paragraph should state its purpose directly: a request for assistance due to financial hardship.
The letter’s core details the specific hardship, such as job loss, medical emergency, unexpected expenses, or natural disaster. Explain how this event directly impacted your ability to meet financial commitments. Then, present a specific request for assistance, like a temporary payment reduction, loan modification, or different payment schedule. Supporting documentation, such as layoff notices, medical bills, bank statements showing reduced income, or property damage reports, is crucial for validating claims.
Crafting Your Message
Maintain a respectful, honest, and sincere tone. The language should be clear and concise, avoiding overly emotional rhetoric. Structure the letter logically: begin with a direct statement of purpose, elaborate on the hardship’s nature and impact, and conclude with a precise request for assistance.
Accuracy and truthfulness are paramount. Providing false or misleading information can have severe negative consequences and undermine any chance of receiving help. When detailing financial strain, focus on factual accounts and the direct consequences of the hardship on your finances, avoiding blame or accusatory language. A well-organized letter presents facts straightforwardly, making it easier for the recipient to understand the request.
Common Scenarios and Specific Considerations
For mortgage payment difficulties, a hardship letter seeks options like loan modification, forbearance, or a repayment plan. Lenders look for clear explanations of income reduction or expense increase, with supporting documents such as pay stubs, unemployment statements, or medical bills. Forbearance allows temporary payment suspension or reduction, commonly ranging from three to twelve months. Homeowners may need to submit a Uniform Borrower Assistance Form.
For medical bill hardship, the letter requests a reduction in the amount owed, an affordable payment plan, or consideration for charity care. Hospitals have financial assistance policies; providing income, household size, and other debt details can help qualify for aid. Many providers offer interest-free installment plans.
In landlord-tenant situations, a hardship letter seeks a temporary rent deferral, a revised payment schedule, or reduced rent. Tenants should explain the temporary nature of their difficulty and propose a realistic plan for resuming full payments. Attaching documentation like a job termination letter, proof of unexpected expenses, or a temporary disability note can strengthen the request.