If you’ve lost income, faced a medical emergency or had another major life change, you may be worried about keeping up with your mortgage. The good news: many lenders and servicers have programs to help homeowners through temporary or long-term hardship — such as forbearance, repayment plans or a loan modification. To start that process, you will often need a hardship letter.
This guide explains what a hardship letter to your mortgage lender is, what to include, and gives you samples you can adapt.
Note: This article is general information, not legal or financial advice.
What Is a Mortgage Hardship Letter?
A hardship letter is a short, honest explanation of:
- What happened to make it hard to pay your mortgage
- How it has affected your finances
- What you are doing to improve the situation
- What kind of help you are asking for
Your servicer uses it, together with your financial documents, to decide whether you qualify for assistance.
Before You Write: Call Your Servicer
Your mortgage servicer is the company you send your payments to. Call them as early as possible — ideally before you miss a payment — and ask:
- What hardship or “loss mitigation” options are available?
- What documents do they need (often called a “loss mitigation application”)?
- Where and how should you send your hardship letter?
Tip: In the U.S., you can also get free help from a HUD-approved housing counselor. They can review your options and help you prepare your application.
Common Reasons for Hardship
Lenders recognize many situations, including:
- Job loss or reduced hours
- Reduced income or business losses
- Serious illness, injury or disability
- Death of a spouse or co-borrower
- Divorce or separation
- Natural disaster
- Unexpected major expenses (medical bills, home repairs)
- Military deployment or relocation
What to Include in Your Hardship Letter
- Your name, property address and loan number at the top
- The cause of the hardship and when it began
- Whether it is temporary or long-term
- Your current income and expenses in simple terms
- Steps you have taken (cutting expenses, looking for work, new job starting)
- The help you are requesting (for example, a temporary reduced payment or a loan modification)
- Your commitment to keeping your home and making payments you can afford
- A list of enclosed documents (pay stubs, bank statements, medical bills, termination letter)
Keep it to one page if possible. Be honest — your letter must match the documents you send.
Sample Hardship Letter: Job Loss
[Your Name]
[Property Address]
[Phone] | [Email][Date]
[Servicer Name]
Attn: Loss Mitigation Department
[Address]Re: Hardship Letter — Loan No. [Number]
Dear Loss Mitigation Department,
I am writing to explain my current financial hardship and to request assistance with my mortgage on the property listed above.
On [date], I was laid off from my position at [employer] due to [company downsizing/restructuring]. Since then, my household income has dropped from about $[amount] to $[amount] per month, which comes from [unemployment benefits/my spouse’s income]. As a result, I was unable to make my full payment for [month(s)].
I am actively looking for work and have [interviews scheduled / a new job starting on (date)]. We have also reduced our expenses by [examples].
I am committed to keeping my home. I am requesting [a forbearance period / a repayment plan / a loan modification] so that my payments are affordable while I get back on my feet.
I have enclosed my termination letter, recent bank statements and proof of my current income. Please contact me at [phone] or [email] if you need anything further.
Thank you for considering my request.
Sincerely,
[Signature]
[Printed Name]
Sample Hardship Letter: Medical Emergency
Re: Request for Mortgage Assistance — Loan No. [Number]
Dear [Servicer Name],
In [month, year], I was diagnosed with [condition / had a serious injury], which required [surgery/hospital stay/ongoing treatment]. I was unable to work for [time period], and my income fell to $[amount] per month. At the same time, I received medical bills of about $[amount].
My doctor expects me to return to work by [date]. Until then, I cannot afford my current payment of $[amount]. I am requesting [type of assistance] to help me avoid falling further behind.
Enclosed are a letter from my doctor confirming my leave, recent medical bills, and proof of income.
Sincerely,
[Name]
Sample Hardship Letter: Divorce or Death of Co-Borrower
Re: Hardship Letter — Loan No. [Number]
Dear [Servicer Name],
Following my [divorce, finalized on (date) / the death of my spouse on (date)], our household income has dropped from $[amount] to $[amount] per month. I am now solely responsible for the mortgage on our home.
I want to stay in the home and continue making payments. I am requesting a review for a loan modification that would make my monthly payment affordable on my current income of $[amount].
Enclosed are [divorce decree / death certificate], my recent pay stubs and bank statements.
Sincerely,
[Name]
Mistakes to Avoid
- Waiting too long. The earlier you contact your servicer, the more options you usually have.
- Being vague. “Times are hard” is not enough. Give dates, amounts and causes.
- Exaggerating. Your documents will be checked. Inconsistencies can delay or sink your request.
- Blaming the lender. Keep the tone cooperative and solution-focused.
- Sending it without the full application. A letter alone usually isn’t enough; send everything the servicer asked for.
- Not keeping copies. Keep a copy of everything you send and note who you spoke to and when.
Watch Out for Scams
Be careful of companies that promise to “save your home” for an upfront fee. Applying for help from your servicer is free, and legitimate HUD-approved housing counselors don’t charge for foreclosure-prevention counseling.
Frequently Asked Questions
Does a hardship letter guarantee help?
No. It’s one part of your application. Your servicer will review your income, expenses, loan details and investor rules before deciding.
Should I keep paying while I wait?
If you can make a full or partial payment, ask your servicer how they would handle it. Don’t stop paying without talking to them first.
How long should a hardship letter be?
One page is ideal. Be brief, specific and honest.
Disclaimer: This article is for general information only and is not legal or financial advice. For advice about your situation, contact your servicer, a HUD-approved housing counselor or a qualified professional.