How to Compose a Hardship Letter to Creditors
A hardship letter should be sent to creditors explaining your financial situation and reasons for delinquent payments. This hardship letter can help creditors understand your current finance situation to find a resolution.
- Difficulty:
- Moderate
Instructions
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1
First download a sample hardship letter template to customize to your creditors or create one yourself using a word program.
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Put the contact, company name, creditors address, and phone number at the top left of your hardship letter.
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Next list your name, address, phone, and creditors account number, as well as other relevant information on your hardship letter.
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Make sure to include appropriate information to creditors such as amount of debt, minimum payment amounts, interest rates, etc. in your hardship letter.
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5
Explain in your letter the reason for your hardship, date of onset, and projected duration until situation improves.
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Tell your creditors your intention is to pay the debt off and explain the amount you are able to pay monthly now and why.
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Ask the creditors for their assistance and let them know a resolution is needed as soon as possible and thank them in your final statement of your hardship letter.
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End your hardship letter by asking your creditors to contact you and explaining the best number to reach you and at what time a day.
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Tips & Warnings
Make your letter short and specific and informational.
Explain your intentions and be positive with your statements while indicating a sense of urgency.
Follow up the hardship letter with a phone call to your creditors.
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Resources
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Comments
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Writing hardship letters does not have to be difficult, but you need to know what your lender is looking for. Many homeowners simply do not understand the basics of writing an effective hardship letter and this is costing them their homes. The main points for a hardship letter are: 1. Subject Line Request - Right off the bat let the loss mitigator know what you are requesting....2. Brevity – Don’t let your financial hardship letter go on for page after page. Keep it as short as possible. 3. Personal - Let the loss mitigator get to know you and your circumstances. 4. Clarity – Get your points across in the clearest possible way and then provide a summary. 5. Information – Make sure you leave nothing out of your financial hardship letter. Attach important information such as bank statements, cash flow documents, income tax statements, letters of reference, etc. 6. Be Appreciative – The person reading this financial hardship letter did not get you into this mess but he or she is the one that can help you out of it. So be thankful and humble in your tone. The hardship letter is not the only tool in your chest for a financial reprieve but it is by far one of the most important. So make it your prime instrument when dealing with the bank and get it in soon.
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Writing hardship letters does not have to be difficult, but you need to know what your lender is looking for. Many homeowners simply do not understand the basics of writing an effective hardship letter and this is costing them their homes. The main points for a hardship letter are: 1. Subject Line Request - Right off the bat let the loss mitigator know what you are requesting. 2. Brevity – Don’t let your financial hardship letter go on for page after page. Keep it as short as possible. 3. Personal - Let the loss mitigator get to know you and your circumstances. 4. Clarity – Get your points across in the clearest possible way and then provide a summary. 5. Information – Make sure you leave nothing out of your financial hardship letter. Attach important information such as bank statements, cash flow documents, income tax statements, letters of reference, etc. 6. Be Appreciative – The person reading this financial hardship letter did not get you into this mess but he or she is the one that can help you out of it. So be thankful and humble in your tone. The hardship letter is not the only tool in your chest for a financial reprieve but it is by far one of the most important. So make it your prime instrument when dealing with the bank and get it in soon.
