Sample Hardship Letter for Mortgage Refinance: Free & Effective

In this article, I’ll guide you through the step-by-step process of writing an effective hardship letter, share personal insights, and provide a customizable
template to get you started.

Key Takeaways

  • Understand the Purpose: A hardship letter explains your financial struggles to your lender, offering context to your refinancing request.
  • Be Concise and Honest: Clarity and truthfulness are crucial in detailing your situation without oversharing.
  • Provide Evidence: Back up your claims with tangible evidence to strengthen your case.
  • Show Willingness to Cooperate: Demonstrate your commitment to finding a solution and maintaining your mortgage payments.
  • Use a Professional Tone: While it’s a personal letter, maintain a respectful and professional tone.
  • Seek Feedback: Before submission, get a second opinion to ensure clarity and impact.

Step 1: Understand the Purpose of Your Hardship Letter

A hardship letter serves as a personal plea to your lender, explaining the financial difficulties preventing you from maintaining regular mortgage payments. It’s your opportunity to provide context to your numbers and plead your case for a refinanced mortgage.

Step 2: Start with Personal Information

Begin your letter by clearly stating your name, address, loan number, and the date. This information ensures that your letter is correctly filed with your mortgage details.


Trending Now: Find Out Why!

[Your Name]
[Your Address]
[City, State, Zip]
Loan Number: [Your Loan Number]

Step 3: Address the Letter Appropriately

Address the letter to the appropriate department or individual, typically the loss mitigation department or your account manager. If unsure, a simple “To Whom It May Concern” works as a respectful and professional salutation.

Step 4: Clearly State Your Purpose

Start the body of your letter by stating your intention to request a mortgage refinance due to financial hardship. Be direct and get to the point in the first paragraph.


I am writing to request a mortgage refinance due to financial hardships I am currently facing. Despite my best efforts to maintain financial stability, recent events have significantly affected my ability to meet my monthly mortgage obligations.

Step 5: Detail Your Hardship

This is the heart of your letter. Explain your situation clearly and concisely, detailing the specific circumstances (job loss, medical emergencies, etc.) that led to your financial hardship. Remember, honesty is crucial—don’t embellish or hide details.


Over the past few months, I have encountered severe financial difficulties due to an unexpected job loss, compounded by medical expenses from a recent illness. Despite cutting back on non-essential expenses and seeking additional income sources, I find myself unable to meet the current terms of my mortgage.

Step 6: Include Relevant Financial Information

Provide a brief overview of your financial situation, including significant changes in income or expenses. This helps the lender understand your inability to meet your current mortgage terms.

Step 7: Express Your Commitment to Resolve the Situation

Lenders want to know you’re committed to maintaining your home and finding a solution. Express your desire to work out a feasible payment plan and your willingness to cooperate with the lender’s requirements.

Step 8: Provide a Call to Action

Conclude by asking the lender to consider your request for mortgage refinancing and express your willingness to provide any additional information needed.

Step 9: Close the Letter Professionally

End with a formal closing, such as “Sincerely,” followed by your signature and printed name.

Step 10: Attach Necessary Documentation

Include any relevant financial documents that support your hardship claim, such as income statements, medical bills, or a job termination notice.

Personal Tips from Experience:

  • Keep It Brief: Aim for one page. Be concise yet detailed enough to convey your situation.
  • Remain Positive: While it’s important to convey hardship, maintain a positive tone regarding finding a solution.
  • Proofread: Errors can detract from your letter’s credibility. Double-check for spelling and grammar mistakes.
  • Seek Advice: If possible, have a financial advisor or attorney review your letter. Their insights can enhance your message.

Template for Hardship Letter for Mortgage Refinance

[Your Name]
[Your Address]
[City, State, Zip]
Loan Number: [Your Loan Number]

[Recipient’s Name or Department]
[Lender’s Name]
[Lender’s Address]
[City, State, Zip]

Dear [Recipient’s Name or “To Whom It May Concern”],

I am writing to request consideration for a mortgage refinance due to financial hardship. Recently, I have faced [briefly state the nature of your hardship], significantly impacting my ability to fulfill my mortgage obligations.

Despite efforts to [mention any actions you’ve taken to mitigate the hardship], I am currently unable to meet the terms of my mortgage. My income has [describe any reduction or loss in income], and my expenses have increased due to [mention any relevant increase in expenses].

I am committed to maintaining my home and am seeking a refinancing solution that will allow me to manage my payments more effectively. I am willing to provide any additional information and cooperate fully to facilitate this process.

Thank you for considering my request. I am hopeful for a positive resolution and am ready to discuss any potential options that may be available.


[Your Signature (if sending a hard copy)]
[Your Printed Name]

Conclusion and Call to Comment

Writing a hardship letter for mortgage refinance is a critical step in addressing your financial challenges and seeking a path forward. Remember, this letter is your personal story, told with honesty and a clear request for assistance.

By following these steps and utilizing the provided template, you can craft a compelling letter that conveys your circumstances and your eagerness to find a solution.

Have you written a hardship letter for mortgage refinancing before? What tips can you share from your experience? Please comment below and share your insights to help others navigate this process.

Frequently Asked Questions (FAQs)

Template for a Hardship Letter Due to Unemployment

Q: What is a hardship letter for mortgage refinance? 

Answer: A hardship letter for mortgage refinance is a written document that explains the financial difficulties a borrower is facing and requests a mortgage refinance to alleviate the hardship. 

It outlines the specific hardships, such as job loss, medical emergencies, or reduced income, and demonstrates the borrower’s commitment to homeownership while seeking a mutually beneficial solution with the lender.

Q: Why is a hardship letter necessary for mortgage refinance? 

Answer: A hardship letter is necessary for mortgage refinance because it allows borrowers to provide a detailed account of their financial difficulties and demonstrate their need for assistance. 

It serves as a personal appeal to the lender, helping them understand the borrower’s situation and potentially approve a refinance that can help the borrower regain financial stability and continue meeting their mortgage obligations.

Q: What should be included in a hardship letter for mortgage refinance? 

Answer: A hardship letter for mortgage refinance should include the following:

  1. Explanation of the hardship: Clearly describe the specific financial hardship you are facing, including details such as dates and supporting documentation.

  2. Efforts to overcome the hardship: Highlight the steps you have taken or are taking to overcome your financial difficulties, such as seeking employment, undergoing training, or obtaining financial counseling.

  3. Proposed solution: Outline why refinancing your mortgage is the best solution for both you and the lender, emphasizing the benefits such as lower monthly payments or reduced interest rates.

  4. Commitment to homeownership: Express your commitment to homeownership and assure the lender of your intention to fulfill your mortgage obligations after the refinance.

  5. Contact information: Provide your full name, address, phone number, and email address, making it easy for the lender to contact you for any further information or clarification they may need.

Q: How should a hardship letter for mortgage refinance be formatted? 

Answer: A hardship letter for mortgage refinance should be formatted as a formal business letter. Use a professional tone and maintain a clear and concise writing style. Include a proper salutation, introduction, well-organized paragraphs, and a polite closing. 

Ensure the letter is free from grammatical and spelling errors, and consider using a legible font and appropriate formatting, such as left alignment and adequate spacing.

Q: What supporting documents should accompany a hardship letter for mortgage refinance? 

Answer: Along with your hardship letter, it is recommended to include supporting documents that validate your claims and provide evidence of your financial situation. 

These may include recent pay stubs, tax returns, bank statements, medical bills, job termination letters, divorce decrees, or any other relevant documentation that supports your case. 

Including these documents strengthens the credibility of your hardship letter and reinforces the need for mortgage refinance.

Q: How long should a hardship letter for mortgage refinance be? 

Answer: A hardship letter for mortgage refinance should be concise and to the point. It is generally recommended to keep it to one or two pages. 

Focus on providing a clear explanation of the hardship, outlining your efforts to overcome it, and proposing a solution. Avoid unnecessary details or excessive elaboration that may dilute the impact of your letter.

Q: Should I seek professional help to write a hardship letter for mortgage refinance? 

Answer: While it is not mandatory to seek professional help, some individuals may find it beneficial to consult with a housing counselor, financial advisor, or an attorney experienced in mortgage refinancing. 

These professionals can offer guidance, review your hardship letter, and provide valuable insights to help you present a strong case to your lender. 

However, it is possible to write a compelling hardship letter on your own by following the necessary guidelines and utilizing available resources and templates.

Leave a Comment

Your email address will not be published. Required fields are marked *