Financial Hardship Sample Letter

A financial hardship letter is a good communication that explains your financial situation and defaults. If you have missed out a few payments, you should contact your creditor to avoid a foreclosure. It also urges the creditors to consider a solution to work out for debtors and avoid bankruptcy. A right and formal format should be used to enable you to negotiate with creditors sucessfully.

Guidelines

- THe format and content must be very direct and easy to follow and understand.

- You need to your desperation and need to save your assets and family.

- Using figures and numbers support your explaination why the creditors should work out a solution for you.

- The request has to be presented in the formal pattern.

- You can use bullet points to show your commitments and plans of future improvement. It can increase the creditor's confidence that you are able to pay the payments in the future.

- Letter needs to be typed and readable.

- You must make sure that you choose a reliable mail service to mail the letter. If you have not heard anything from the creditor, you should contact them by phone.

Format

Lender's Name/Company Name Lender's Address

Loan No:

I (the Borrower's Name) request you to kindly review my finanical situation to see if my case qualifies for the work out option.

May financial problem arose due to (give the problem) that led to the default on the loan payments.

(Give the explaination of the problem in detail with the facts & figures)

I believe that this situation is (Temporary or Permanent).

I outline the action plans to improve my finanical situation.

(Give the action plans

I, (the Borrower's Name), undertake that the information provided is in the best of my knowledge.

The Borrower's Signature Date

Co Borrower's Signature Date




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