How to write a hardship letter to your lender

Writing a hardship letter can be a daunting and fearsome task even for seasoned writers. When your home is on the line it can be more difficult because of the emotional attachment to your subject matter. There are three critical pieces of information your lender needs to read in a hardship letter to help them make a decision: the reason for the hardship, your solution to the hardship and what are you requesting from them.

How to write a hardship letter:

  • Under reason for hardship include the following: What happened? When did it happen?  How much has it impacted you financially?  Has your situation improved?  Including a timeline of events helps your lender to understand how long your hardship has been going on so they can realize the scope of the problem.
  • Under your solution to the problem include: What are you doing to fix the problem? i.e., reducing expenses, increasing income with a second job or finding a roommate, etc.  Include whether you have been successful with your efforts.
  • Under what you are requesting from the lender include: The name of the program you feel will help.  The reason you can continue to pay if they do help you, and your desire to retain ownership of your home.

If you follow these simple steps for how to write a hardship letter, you are well on your way to getting your point across to your lender. Remember to keep your letter to just one page with three paragraphs. A housing counselor at can help to flesh out your letter in more detail. Housing counseling can also help you understand the best program option for you so you will be asking for a realistic solution to solve your problem.  Please feel free to call today at 888-449-9392 to speak to an experienced counselor.

Written by Larry E., Housing Counselor