Mortgage Hardship Letter

I have an adjustable mortgage that is changing every month. With the new law I call the lender to request for information. I was told to send a hardship letter requesting to lower the payment comparable to what I have now. I need help on how to write a hardship letter.

Thank you

2 Answers

Preparing a Hardship Letter:

  • Make a separate list of the things you want to say. Try to separate your feelings from the facts. Present the events in the order in which they happened, using dates whenever possible.

  • Type or print legibly in BLACK ink

  • Enclose copies of documents such as contracts, letters, and complaint forms with agencies (if you have a predatory or fraudulant loan) that may support your hardship


  • SIGN and MAIL your Hardship letter to the lender

You may want to contact a HUD approved Counseling Agency in your area for assistance. You can locate one through

I'm not sure exactly sure of what information you were looking for when you contacted your lender but if you are worried that you may fall behind due to the adjustments on your adjustable rate mortgage, you do have a few options at this time.

Many people opted for Option ARM mortgages as housing prices increased from 2002 - 2006. The Option ARM, while it offered a few bells and whistles became popular due to the low minimum monthly payments that it allowed. Unfortunately, that low minimum monthly payment was used by people to afford homes that they should not have been purchasing.

When the lender asked you to write a hardship letter - was that in response to your complaints about the mortgage you are in? A hardship letter by itself will rarely accomplish anything. You need to be able to show a lender that you will not be able to keep up with the payments if they keep increasing. A hardship letter is just one item that needs to be sent in to the lender. I would question the person that asked you to do this and ask them to be more specific.

If you want the lender to lock in the rate or to lower the payments, you may want to seek the services of a loss mitigation specialist. I happen to help people in your situation frequently but if you want to go it alone, here is what you need to submit to a lender in order to get them to assist you.

First, the hardship letter. This letter needs to explain why you cannot continue to make the payments due to your income being less than what is needed to cover your living expenses and your mortgage.

But you need to do more than just write a letter. You need to provide a complete income and expense report showing all the money that comes in and then prove that with paystubs, W-2's and tax returns if you are self employed. Expenses can be written out - include everything - food. clothing, gas, insurance, utilities... everything.

Let the lender ask you for documentation if they want it. But they may, so be truthful. The trick here is to convince the lender that you cannot make the payments now but that you definitely can handle a lower payment. Again, this is not something just anyone can do... few homeowners know the ratios and calculations lenders perform to ascertain what is acceptable and what is not. The lender may also want to see what liquid assets you have so send a current bank statement.

As I said, I do help people in your situation, view my profile for contact information.