A lot of horrible occurrences and circumstances can be cause for hardship, but what you have to remember is that "hardship" is a subjective concept. If you're trying to modify a loan, get a short sale, or request leniency on your mortgage, chances are that you're writing to someone who has heard it all. It's always worth writing a letter if you think it will help, but keep in mind that there are some reasons for hardship that will almost always be invalid:
- Voluntarily quit job
- Voluntarily reduced hours
- Part of expected, seasonal layoffs
- The housing crisis
- "The economy"
- Not meeting rental property terms if the tenants are all paying the required amount
- Lack of proper insurance in the face of a foreseeable emergency
- Misled by real estate agent/loan officer/credit card company, etc.
- Can't meet terms, but haven't cut out unnecessary expenses (cable, gym membership, vacation home, etc.)
- Loss of scholarship/financial aid due to the fault of the recipient
- Hardship that does not keep the sender from actually meeting the terms (within reason)
While some of these reasons might work in conjunction with other reasons, for the most part they are not able to stand on their own as a valid petition for loan modification, short sale, or leniency.
Index of Hardship Letter Examples