Free Hardship Letter for Self-Employed Sample

A hardship letter is a written explanation of your financial difficulties and request for assistance. It is often used in financial applications, such as loan modifications or loan forbearance. Here’s a basic outline and an example:

Outline:

Sample 1 - Hardship Letter for Self-Employed

Dear [Lender’s Name],

I am writing to request assistance in the form of a loan modification for my mortgage on [property address]. I am a self-employed individual who has recently experienced a financial hardship.

I have been self-employed for the past 10 years, but a sudden illness has prevented me from working and has drained my savings. I have been unable to make my mortgage payments on time and I am now facing the possibility of foreclosure.

I have attached medical bills and financial statements to support my claims. I am asking for a loan modification that would lower my monthly payments and give me the time I need to recover and get back on my feet.

Thank you for your time and consideration. I look forward to your response.

Best regards,

[Your Name]

Sample 2 - Hardship Letter for Self-Employed

Dear [Lender’s Name],

I hope this letter finds you well. I am writing to request assistance in the form of a loan forbearance on my small business loan. As a self-employed business owner, I have been facing financial difficulties due to the ongoing pandemic.

Due to widespread shutdowns and decreased demand, my business has been struggling to stay afloat. Despite my best efforts, I have fallen behind on my loan payments and am in need of temporary relief.

I have included financial statements and recent tax returns to demonstrate the impact the pandemic has had on my business. I am asking for a loan forbearance of 6 months, during which time I hope to recover and get back on track with my payments.

Thank you for considering my request. I appreciate your understanding and support during these challenging times.

Best regards,

[Your Name]

Frequently Asked Questions (FAQs)

1. What is a hardship letter for self-employed individuals?

Answer: A hardship letter is a written explanation of financial difficulties and request for assistance. For self-employed individuals, a hardship letter can be used to request financial assistance from lenders, such as a loan modification or forbearance, due to financial hardship caused by factors such as illness, decreased business, or unexpected expenses.

2. What should be included in a hardship letter for self-employed individuals?

Answer: A hardship letter for self-employed individuals should include the following elements:

Introduction: State the purpose of the letter and current financial situation
Explanation of hardship: Explain the reasons for financial hardship
Evidence of hardship: Provide documentation or evidence to support claims
Request for assistance: Explain what is being asked for and how it will help overcome hardship
Conclusion: Thank the reader for their time and consideration.

3. How do I write a compelling hardship letter for self-employed individuals?

Answer: To write a compelling hardship letter, consider the following tips:

Be concise: Keep the letter short and to the point
Be honest: Provide a clear and honest explanation of the financial difficulties
Provide evidence: Include relevant documentation to support claims
Be specific: Clearly explain what assistance is being requested
Be professional: Write the letter in a professional and respectful tone.

What should I avoid in a hardship letter for self-employed individuals?

Answer: When writing a hardship letter for self-employed individuals, it’s important to avoid the following:

Being vague: Avoid general statements and be specific about the financial difficulties
Being negative: Do not use a negative tone or express frustration or anger
Being unrealistic: Request an amount or type of assistance that is reasonable and feasible
Lying: Do not provide false information or exaggerate the situation.