Sample for Hardship Letter
New York, 2211
Envy Company Ltd
December 13, 2012
To whom it may concern,
I am writing this letter to explain you the financial distress I am currently facing that has forced me to become delinquent on my mortgage. Though I have done almost everything to ensure that I do not default on my monthly payments, the current circumstances have made it impossible for me to carry out any further payments, at least for the time being.
The main reason for the shortfall is the downsizing currently taking place in our company, which I am a part of. My savings are just enough to feed my family, where for now I cannot afford to pay you the money that I owe. However, I am fully committed to making the loan payments and therefore assure you that the current situation is temporary.
A Loan modification, for now, will greatly relieve some of the stress. I truly hope that you will understand the complications I am currently facing. I anxiously await your response.
Template for Hardship Letter
[Name of Recipient]
Dear [Name of Recipient]: (or To Whom It May Concern)
I have trouble making my monthly payments due to the financial pressure created by the high interest rates. Despite consulting a specialist mortgage broker, I am forced to pay deferred interest payment which had increased my loan balance.
In addition to that, I have to pay regular insurance premium and taxes, which has made it difficult for me to make ends meet, in the combined annual salary of (me and my wife) $65,000.
In order to avoid foreclosure, I am requesting for a lower interest rate on the loan mortgage. Knowing our credit history, and given the fact that we have been your customers for over five years, I hope that you will look into our case.
[Thank them for their consideration]
[Sincerely or Yours faithfully]