A hardship letter is a document an individual uses to explain to a creditor the personal difficulties that caused them to fall seriously behind on their payments. It has a specific purpose in that it allows the individual to respectfully ask a creditor for more time to make up past due payments in the wake of unforeseen financial problems.
A hardship letter may be required is when an .
individual seeks to modify the terms of a home loan agreement or undergo a "short sale" on property they own. If a person has fallen behind on a credit card payment due to an illness or job loss, a hardship letter may help the creditor empathize with the situation and be more likely to renegotiate payment terms. A sample hardship letter can be found at http://credit.org/blog/example-of-a-hardship-letter/. More Reference Links: http://www.loansafe.org/hardship-letter-sample-loan-modification http://www.bankrate.com/finance/mortgages/writing-a-hardship-letter-for-a-loan-mod.aspx
