Financial Hardship Letter

I am writing to explain my current situation in relationship to the mortgage payment that I am no longer able to pay due to financial hardship. I understand that my mortgage payment is important and that having my situation come to the point where I have to write a hardship letter represents a very low point in my life. For 10 long years, my husband and I have worked diligently as self-employed house cleaners. We worked very long hours to keep up with all our bills and obligations and to save money to send our son to college.

We developed many friendships with the families we worked for and truly loved the work we did for our clients.

Unfortunately, I became very sick in 2005 and was no longer able to keep up with the physical demands of the house cleaning business. I was in and out of the hospital and unable to keep any regular schedule and was also very weak from the sickness I was suffering from internally.

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My husband continued with as many clients as possible, but was not able to continue bringing in the income we were making when the both of us were working. Sadly, we have had to use our son’s college savings to help pay for our monthly expenses, including the mortgage payment.

We worked for many years to save that money and now our son will only be able to go to college on financial aid. After I was sick in 2005, my son also became ill and had to be hospitalized.

He is only nine years old and had to have special medical care at the Children’s Hospital. Unfortunately, we have never been able to afford health insurance as self-employed house cleaners, therefore the entire balance on the medical bills for me and my son are to be paid by us without any help from insurance. The current bill at the hospital is $24,000 and they are threatening collections if we do not start making payments soon.

Since October 2006, my husband has been working and using the college savings to live and pay our bills. Our son’s college savings have now run out and we have no where to turn for additional money to pay our mortgage payment and medical bills. We feel our only option might be to file for bankruptcy, but we feel strongly about keeping our commitment to the obligations we entered into so many years ago. We do not want to go that route if at all possible. We have put our house on the market to be sold, but with the market so slow, we have been unable to obtain any offers that would completely cover the mortgage we still owe.

We have received one offer that is less than our current loan is worth and we would like to make the best attempt we can to make good on our debt to the bank. Instead of filing for bankruptcy, we would like to please request that the bank accept the current offer for less than we owe as our best faith payment of the loan. I light of the sad fact that we can no longer make the mortgage payments anyway, the house is likely to go into foreclosure; in which the bank is not likely to recover much more than is current being offered by the prospective buyer.

We are very sad to have had to write this letter to the bank that has allowed us to realize our dream of home ownership. I wish I could go back to work, but I am not able to due to a debilitating sickness that has weakened me to the point that I am unable to do any physical labor. I am writing with sincere hope that the bank will understand our situation and believe our humble desire to make good on as much of our mortgage as we possibly can. We beg you to please accept the current offer to purchase the house so that we may avoid the shame and embarrassment of having to file for bankruptcy.