How to Compose a Financial Hardship Letter Template

A financial hardship letter template is a tool to help you draft a proper explanation of your inability to keep up with your loan payments. The letter needs to be addressed to the right individual at your lending institution, and it needs to clearly explain why you can no longer make the payments you originally agreed to make.

Step 1

List your name and property address at the top of your financial hardship letter template. Put the date in the second line.

Step 2

Format the top of your template by addressing your financial hardship letter to your lender or contact person, followed by the name of the lending company, its address and your loan information, including the account number.

Step 3

Decide on what type of modification you want, such as a short sell or a modification of the loan's terms that might allow you to continue making payments. Include this in an RE: statement at the beginning of your letter.

Step 4

In the main body of your letter, explain your specific circumstance of financial hardship and the main reason you are unable to make payment at the present time.

Step 5

State your future payment intentions in your template and ask for help by restating your request to the financial lender.

Step 6

Explain that if this hardship request is granted you would be able to make payments and achieve your financial goal -- for example, to keep your house or car.

Step 7

As the final statement on your hardship letter, state your anticipation that the lender will work with you to meet your common objective and resume payment again.


Be specific when you state your financial hardship and clearly spell out what you are requesting the bank to do. Write in short clear descriptive statements and break different points into short separate paragraphs to make it easy to read.

Things You'll Need

  • Word document program

  • Lender's email address and contact information