financial hardship letter forms

A lot of people may face financial problems and in particular, some of them may face the inability to pay certain obligations like medical and healthcare as medical treatments and surgeries cost a lot of money. For these kinds of people who are not prepared for medical emergencies, have no medical plans or for those who just do not have the money to spare for expensive medical bills, their last hope for a settlement is to appeal by using a financial burden letter or financial hardship letter.

What is a Financial Hardship Letter?

A statement that is written by a borrower to a creditor through which the former describes a change in his financial situation like facing a financial crisis or getting out of money, is known as a financial hardship letter. This letter is generally required by the creditors when a borrower requests some financial assistance or some alternative payment options. The borrower who will write this letter must keep in mind to provide a detailed explanation of the type of assistance the borrower wants., the cause of the financial hardship and the current financial situation that leads to the nonpayment of debt. The creditor may approve an alternative payment plan or temporary moderations or any other financial options.

Types of Financial Hardship Letters

There are various types of hardship letters we offer on our website that you can choose from. It depends on a certain purpose. Let’s examine some of them:

  • Mortgage Hardship Letter

    In this type of letter, you have to provide statements and proof that you are qualified to be in financial hardship. As a homeowner, for instance, you have to describe and substantiate your financial setbacks that resulted in your inability to comply with the payment of the mortgage.

  • Medical Hardship Letter

    In a medical hardship letter sample, the applicant must provide details about the financial hardship which resulted in the inability to pay the medical bills. In connection to this, the letter must clearly state a settlement offer and you should also provide the exact amount and the date along with the method of payment.

  • Short Sale Hardship Letter

    In this kind of letter, you have to politely and genuinely express the reasons why you can no longer sustain the payment of the monthly mortgage payment. You have to provide proof and clear reasons for the inability to pay.

7 Steps to Write an Appealing Financial Hardship Letter

Step 1:

Write your name, address and phone number at the top of your letter and write the date underneath.

Step 2:

Mention the contact information of the creditor underneath the date and include the name of the employee, specific department, company name and address along with it.

Step 3:

Make sure you address the letter to the creditor’s employee and if you do not have a specific creditor employee name, you can address the letter as you do in other formal standard letters like “Dear Sir/Madam” or “To Whom It May Concern”.

Step 4:

Start stating your intent in the first paragraph of your letter. Try to ask the creditor if they can postpone the payments, review your financial situation for the assistance program or determine your eligibility for other payment options.

Step 5:

Mention the change in your financial situation in the next paragraph. Explain what kind of hardships you are suffering in case you lost your job, suffered a serious injury, could not sell your home or have endured other types of events that affected your finances. Describe your current financial status and give details about your income and mention the financial details that add to your problem.

Step 6:

Withhold from making any kind of accusation like placing blame or complaining or insulting the creditor’s company or any other entity in your letter. Make sure to keep your tone respectful and remember that you are asking for help and highlight the fact that you are suffering and that financial hardship is seriously affecting your life.

Step 7:

In the end, finish your letter by providing instructions on how and when to contact you to discuss the matter in the future and print your name at the bottom of the letter along with a signature.

3+ Financial Hardship Letter Samples & Forms in PDF | DOC

1. Financial Hardship Program Letter

File Format
  • PDF

Size: 17.8 KB


The given template deals with a letter that is sent by a medical center providing details about a financial hardship program that their organization is organizing. This document lays out a formal letter that is written by the medical staff to the client who is receiving certain medical services from the medical organization. It provides details about the financial hardship program and that it is normally concerned about the clients who are facing some financial problems and are unable to use the facilities provided by the medical center. These people can apply for the financial hardship program by filling up the form that is provided along with the letter.

2. Sample Financial Hardship Letter

File Format
  • PDF

Size: 197.6 KB


Most of the time, financial hardship letters are written to request some kind of modification of loans or to make some settlement of payments or debts. This document will provide a sample financial hardship letter that will help you in getting to know the required format to frame a well-written letter to the creditors. This hardship letter can be utilized by those people who are facing hardship in getting their loan sanctioned. The letter must mention the state of what type of work-out the sender is seeking, explain the hardship circumstances and tell their story as briefly as possible including the important points about the hardships. Also, mention the reasons behind your hardships and the plan for getting payments back on track. Besides, you will also get some pro tips to draft a hardship letter in this template.

3. Simple Financial Hardship Letter

File Format
  • DOC

Size: 4.5 KB


If you want to write the best letter to state your financial hardships, make sure your letter reads like an attorney’s pleading. Establish facts in such a way that cause a loan creditor to decide to either grant a short sale or a loan modification and it is also important to be specific about your lack of fund. This template will provide you with a simple financial hardship letter containing a standard and professional content that you can even utilize right after downloading. It consists of a hardship letter from a borrower to a loan lender stating their hardship regarding being delinquent on paying the home loan and requesting for some solution as they don’t want to lose their house.

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