Life throws curveballs, and sometimes those curveballs can hit your finances hard. If you're struggling to make your mortgage payments due to unforeseen circumstances, you might be considering a hardship letter to your lender. This mortgage hardship letter serves as a formal request for mortgage assistance, explaining your situation and proposing a solution that benefits both parties.

While a hardship letter can be a valuable tool, crafting a compelling one requires careful planning and execution. Here's a comprehensive guide to help you navigate the process:

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Understanding Hardship Programs: Not a Free Pass

Before diving in, it's crucial to understand that a hardship program isn't a way to escape your mortgage obligations. Lenders offer these programs to help borrowers facing temporary difficulties get back on track with their payments. Common hardship options include:

Loan Modification

This alters the terms of your loan, potentially extending the loan term or lowering your interest rate to create a more manageable monthly payment.


This provides temporary relief by allowing you to temporarily reduce or suspend your monthly payments for a set period.

Workout Agreement

This customizes a solution based on your specific situation, potentially involving a combination of forbearance and loan modification.

Planning Your Hardship Letter: Honesty and Clarity Are Key

Now, let's get down to crafting your hardship letter. Here are some essential elements to consider:


Clearly state your purpose - requesting mortgage assistance due to financial hardship.

Identify Yourself

Include your name, account number, and the property address associated with the mortgage in your hardship letter.

Explain Your Hardship

Be honest and concise about the financial difficulties you're facing. This could be due to a job loss, illness, medical bills, a natural disaster, or other unforeseen circumstances. Provide clear and factual details to establish your legitimacy.

Proof of Hardship

Supporting documentation strengthens your case. Attach copies of pay stubs reflecting your reduced income, medical bills in case of illness, or documentation related to any other hardship you mentioned.

Impact on Payments

Explain how the hardship has impacted your ability to make your mortgage payments. Be clear about how much you're behind and for how long.

Proposed Solution

Don't leave the solution entirely to the lender. Research different hardship programs and propose a specific solution that you believe can help you get back on track. Be realistic and consider what payment amount or loan modification terms would be manageable for you in the long run.

Future Outlook

Demonstrate your commitment to overcoming this hardship in your hardship letter. Briefly explain your plan for getting back on track financially, whether it's securing a new job, receiving unemployment benefits, or implementing a strict budget.


Express your willingness to work with the lender to find a mutually beneficial solution. Thank them for their time and consideration.

Additional Tips for a Compelling Hardship Letter

To really nail your letter, follow these tips:

Maintain a Professional Tone

Use formal language, avoid emotional pleas, and proofread carefully for any typos or grammatical errors.

Timeliness Matters

Don't wait until you're facing foreclosure to send your letter. The sooner you contact your lender, the more options you might have.

Consider Seeking Guidance

A housing counselor or attorney familiar with mortgage hardship programs can offer valuable advice on crafting your hardship letter and navigating the process.

Quantify the Impact

While explaining the hardship is crucial, quantify its impact on your finances to paint a clearer picture. For example, instead of simply stating "job loss," mention the specific percentage decrease in income you've experienced. Similarly, if medical bills are the issue, provide a ballpark figure to illustrate the unexpected financial burden.

Highlight Past Payment History

If you have a consistent history of making on-time mortgage payments before encountering hardship, emphasize this in your letter. A strong track record demonstrates your past commitment to meeting your financial obligations and increases your credibility.

Appeal to the Lender's Interest

Frame your request not just as a way out of difficulty for you, but also as a solution that benefits the lender. Explain how a modified payment plan helps you stay current on the mortgage, avoiding foreclosure and minimizing potential losses for the lender.

Express Long-Term Commitment

While explaining the hardship, briefly mention your long-term financial goals. Are you actively seeking new employment? Do you anticipate a return to your previous income level in the near future? Demonstrating a plan for future financial stability reassures the lender of your commitment to get back on track.

Consider Emotional Appeals (Sparingly)

While maintaining a professional tone is important, a touch of emotional appeal can be effective when used strategically in a mortgage hardship letter. Briefly mention the impact the hardship has on your family life or well-being, but avoid dwelling on emotions. Focus on presenting a clear picture of your situation and proposing a solution.

Proofread and Edit Ruthlessly

A well-crafted and error-free hardship letter demonstrates your professionalism and attention to detail. Proofread meticulously for typos, grammatical errors, or formatting inconsistencies. Consider having a trusted friend or family member review the letter for clarity and conciseness before sending it to the lender.

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Beyond the Hardship Letter: Communication Is Key

Sending the letter is just the first step. Be prepared to follow up with your lender by phone to discuss your situation and answer any questions they might have. Maintain open communication throughout the process, promptly respond to requests for additional documentation, and be patient as your lender reviews your request.

Remember, a hardship letter is a way to initiate a conversation with your lender and explore options that can help you weather the financial storm. By presenting your situation clearly, proposing a realistic solution, and demonstrating a willingness to work together, you increase your chances of securing a favorable outcome.

This experience can be stressful, but with careful planning, open communication, and a well-crafted hardship letter, you can navigate your financial challenges and find a path towards regaining control of your mortgage payments.

Facing Mortgage Hardship? LendGo Can Help!

Financial difficulties can strike at any time, and navigating the complexities of a hardship situation can feel overwhelming. At LendGo, we understand the stress and uncertainty that comes with facing challenges with your mortgage payments.

That's where we can help. Our team of experienced mortgage specialists is well-versed in hardship programs and can guide you through the process of crafting a compelling letter to your lender. We can also connect you with valuable resources and provide support as you explore options for keeping your home.