1. Identification of Borrower and Account
- Borrower / Account Holder Name: [[Your Full Legal Name]]
- Co-Borrower Name (if any): [[Co-Borrower Full Name]]
- Account / Loan Number: [[Account Number]]
- Current Monthly Payment Amount: $[[Monthly Payment]]
- Current Delinquency Status: [[e.g., 2 payments past due as of [[Date]]]]
- Property Address (mortgage only): [[Full Property Address]]
2. Nature and Cause of the Hardship
The hardship began on or about [[Approximate Start Date of Hardship]] and is caused by the following circumstances, which were beyond my reasonable control:
1. Employment / Income Reduction
[[Detailed explanation, e.g., "I was laid off from my position as [[Job Title]] at [[Employer]] on [[Date]] due to a company-wide restructuring. My previous gross monthly income was $[[Amount]]. I am currently receiving unemployment benefits of $[[Weekly Amount]] per week, which began on [[Date]]. I have been actively seeking new employment and have [[number]] interviews scheduled."]]
2. Medical / Health Issues
[[Detailed explanation, e.g., "I (or my dependent [[Name and relationship]]) was diagnosed with [[condition]] and incurred substantial medical expenses and lost wages during [[period]]. Total out-of-pocket medical costs exceeded $[[Amount]]. I have attached supporting documentation."]]
3. Natural Disaster or Property Damage
[[e.g., "On [[Date]], my home at the property address above sustained significant damage from [[hurricane/flood/fire]], resulting in $[[Amount]] in repairs not fully covered by insurance. I was displaced for [[weeks/months]]."]]
4. Divorce / Separation / Death in Family
[[Detailed explanation of impact on income and expenses.]]
5. Other
[[Any additional factors]]
These events have caused a temporary reduction in household income of approximately [[XX]]% and/or a significant increase in necessary expenses.
3. Current Financial Situation
Monthly Household Income (current):
- Employment / Self-employment: $[[Amount]]
- Unemployment / Disability / Other Benefits: $[[Amount]]
- Other Income: $[[Amount]]
- Total Current Monthly Gross Income: $[[Total]]
Monthly Household Expenses (essential):
- Housing (rent or mortgage on primary residence): $[[Amount]]
- Utilities (electric, gas, water, etc.): $[[Amount]]
- Food and household necessities: $[[Amount]]
- Transportation / Auto expenses: $[[Amount]]
- Medical / Health insurance and expenses: $[[Amount]]
- Other essential: $[[Amount]]
- Total Essential Monthly Expenses: $[[Total]]
Other Debts: [[Brief summary of other obligations and status]]
I have exhausted or am in the process of exhausting my emergency savings, retirement withdrawals (if any), and family assistance.
4. Steps Already Taken to Address the Hardship
- Contacted your customer service / loss mitigation department on [[Date(s)]] to discuss options.
- [[Other steps: e.g., "Obtained part-time employment", "Reduced discretionary spending", "Sold personal assets", "Completed credit counseling through [[Agency]] on [[Date]]"]]
- Made partial payments when possible on [[Dates and Amounts]].
- [[Any government assistance programs applied for or received]]
5. Requested Assistance
I respectfully request one or more of the following forms of temporary or permanent relief (please indicate which options are available):
- Forbearance / Suspension of Payments: Suspend or reduce payments for [[Number]] months while I stabilize my income.
- Repayment Plan: Allow me to repay the delinquent amount over [[Number]] months while maintaining regular monthly payments.
- Loan Modification: Reduce the interest rate to [[Proposed Rate]]%, extend the term, or capitalize arrears to make the payment affordable at $[[Target Affordable Payment]] per month.
- Deferral of Payments: Add missed payments to the end of the loan.
- Other Workout Option: [[Describe any other proposal]]
I am prepared to provide updated financial documentation and to discuss any reasonable alternative that allows me to retain my home / maintain the account in good standing while recovering financially.
6. Supporting Documentation
The following documents are attached or will be provided immediately upon request:
- Hardship explanation and this letter.
- Proof of income (pay stubs, unemployment award letter, tax returns for last two years).
- Proof of expenses (utility bills, medical bills, insurance statements).
- Bank statements for the last [[X]] months.
- Hardship evidence (layoff letter, medical records, insurance claim, divorce decree, death certificate, etc.).
- Completed financial worksheet / hardship affidavit if required by your forms.
- [[Any additional documents]]
- Recent credit report or explanation of other accounts if relevant to overall financial picture.
7. Commitment and Contact Information
I remain fully committed to fulfilling my obligations under this account. My goal is to become and remain current as quickly as possible. I am available at the phone and email above during [[available hours]] to discuss this request and to provide any additional information required.
I request a written response within [[Number, e.g., 10-14]] business days acknowledging receipt and outlining next steps or required forms.
Thank you for your consideration and for working with me during this difficult time. I value my relationship with [[Lender Name]] and intend to continue it for many years.
Sincerely,
______________________________________________
[[Your Full Legal Name]]
Date: [[Letter Date]]
Co-Borrower (if applicable):
______________________________________________
[[Co-Borrower Full Legal Name]]
Date: ________________
Enclosures:
[List all documents attached]
This sample Hardship Letter is for educational and template purposes only. It is not legal advice. Mortgage servicing, loss mitigation, and debt collection are regulated by federal law (RESPA, TILA, FDCPA) and state laws including Georgia law. Lenders and servicers have specific loss mitigation procedures. Submit any required official forms in addition to this letter. Consult a housing counselor (HUD-approved), attorney, or financial advisor before submitting. Information believed current as of 2026-06.
