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Hardship Letter — Free Template to Explain Financial Hardship to a Lender

A hardship letter tells a lender, servicer or agency what went wrong, where you stand now and exactly what help you're asking for. Answer the questions below and your letter fills itself in as you type.

Your details

No account needed. Your letter updates as you type.

Your lender, loan servicer, card issuer, hospital billing office or agency.

Many servicers have a separate address for hardship or loss mitigation requests.

For accounts, the last 4 digits are usually enough.

Name the cause plainly — job loss, illness, divorce, a death in the family — and how it changed your finances.

Your current income and what you've done to cope. Mention whether the hardship is temporary and how you expect to recover.

Be specific: a loan modification, a lower payment, forbearance, a payment plan, waived fees.

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[Your full name (as on the account)]
[Your mailing address]

October 15, 2026

[Who you're writing to]

Re: Hardship letter

Dear [Who you're writing to],

I am writing to explain a hardship I am facing, and to respectfully ask for your consideration.

What happened:

[What happened]

Where things stand now:

[Where things stand now]

What I am asking for:

[What you're asking for]

I want to handle this responsibly, and I am committed to working with you toward a solution. I would be grateful for your understanding. If you need any further information or documents, please contact me at the address above.

Thank you for your time and consideration.

Sincerely,

[Your full name (as on the account)]

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One-time payment, secure checkout by Stripe. FairLetter is not a law firm and does not provide legal advice. Letters are templates you customize and send yourself.

Templates for your situation

Each version starts with the right wording for that situation already filled in.

What to do, step by step

  1. Call first and ask what they need

    Contact your lender, servicer or billing office and ask which hardship options exist and what they need from you. Many want an application form and financial documents along with your letter.

  2. Gather proof

    Collect documents that back up your story: a layoff notice, medical bills, recent pay stubs, bank statements, a simple monthly budget. Proof makes your letter far more persuasive.

  3. Fill in your letter

    Answer the questions above. Keep it to one page: what happened, where you stand now and the specific help you're asking for. Stick to facts and avoid long backstories.

  4. Send it and keep a record

    Send the letter the way the lender asks — upload, fax or mail — and keep copies of everything. Note the date, the reference number and the name of anyone you speak with.

  5. Follow up

    Call about a week later to confirm your letter arrived and your file is complete. Respond quickly to any request for more documents, and keep paying what you can in the meantime if possible.

What if your lender turns down your hardship request?

A hardship letter asks for help; it doesn't force the lender to give it. If your request is denied, ask in writing for the reason and whether a different option — a shorter forbearance, a repayment plan or a different modification — might work instead. Sometimes a request fails only because a document was missing.

You can usually reapply if your situation changes, for example when you start a new job or your medical bills are settled. Keep sending updated information rather than going silent, and keep paying what you can, since a record of good-faith effort helps.

If you're facing foreclosure or a lawsuit, get help quickly. A HUD-approved housing counselor can review mortgage options for free, and a nonprofit credit counselor can help with credit cards and other debts. For medical bills, ask the hospital about its financial assistance policy.

Example hardship letter

A filled-in sample with made-up details, so you can see the finished result.

Jordan Ellis
742 Cedar Hollow Dr, Columbus, OH 43215

October 5, 2026

Lakeshore Mortgage Servicing
Attn: Loss Mitigation, PO Box 4410, Dayton, OH 45401

Re: Hardship letter — Loan number ending in 3307

Dear Lakeshore Mortgage Servicing,

I am writing to explain a hardship I am facing, which began on April 30, 2026, and to respectfully ask for your consideration.

What happened:

At the end of April I was laid off when my employer of nine years closed its Columbus distribution center. I received unemployment benefits for four months, but they covered less than half of what I had been earning, and I fell two payments behind on my mortgage.

Where things stand now:

In September I started a new job as a logistics coordinator. My pay is about 20 percent lower than before, but it is steady. I have cut our household spending, canceled nonessential services and sold a second car. Based on our new budget, I can reliably pay about $1,150 a month toward the mortgage.

What I am asking for:

I am asking you to review my loan for a modification that adds the missed payments to the loan balance and brings my monthly payment closer to $1,150, so I can keep my home and stay current going forward.

To support this letter, I have enclosed the following: my layoff notice, two recent pay stubs, my last two bank statements and a monthly household budget.

I want to handle this responsibly, and I am committed to working with you toward a solution. I would be grateful for your understanding. If you need any further information or documents, please contact me at the address above.

Thank you for your time and consideration.

Sincerely,

Jordan Ellis

Frequently asked questions

What should a hardship letter include?

Four things: what caused the hardship and when, how it affected your income or expenses, where you stand now and whether it's temporary, and the exact help you want. Add your account number and a list of enclosed documents. Keep it to one page, factual and polite, and sign it.

How long should a hardship letter be?

One page is usually ideal. The person reviewing it may read dozens a day, so a short, specific letter with clear dates and numbers is more effective than a long one. Put the detail in your supporting documents rather than the letter itself.

Will a hardship letter stop foreclosure or collections?

Not on its own. A hardship letter is usually one part of a request for help, such as a loan modification or payment plan. Some lenders pause certain actions while a complete application is under review, but rules vary, so ask your servicer directly what happens while your request is pending.

Should I admit I can't pay?

Be honest about what you can and can't afford. Lenders need to see both that you have a real hardship and that a proposed solution is realistic. Saying you can pay a specific reduced amount is more helpful than saying you can't pay anything, if that's true.

What documents should I send with a hardship letter?

Whatever proves the hardship and your current finances: a layoff or termination notice, medical bills, a divorce decree, a death certificate, recent pay stubs or benefit statements, bank statements, tax returns and a monthly budget. Send copies, never originals, and list them in the letter.

FairLetter is not a law firm and does not provide legal advice. Letters are templates you customize and send yourself.