Hardship Letter To Mortgage Company


A mortgage is any property that is submitted to an institution as collateral by another institution or individual seeking the credit of a certain amount of financial loan. Sometimes the person who has taken the loan is in need of utilizing the mortgaged property even though she/he might not have repaid the loan yet. In such cases, the individual is required to write a Hardship Letter To Mortgage Company. Such a letter contains the details of the hardship the person is facing and cites a request for allowing the usage of the mortgaged property in part or full.

Certain things need to be kept in mind while writing such a letter. Maintain a formal language of the letter. Keep a polite tone while writing the letter. Be precise and cite precisely the hardship that you are facing and try to offer a replacement property as mortgage collateral. Also, mention the possibility of early repayment of the extended loan with higher interest. End the letter by thanking the concerned individual for their time and understanding.

Sample Letter:

Following is a sample letter of a Hardship Letter To Mortgage Company.



800, A-11, Casa Isles
Jaypee Wish Town
Sector 128, Noida
Uttar Pradesh 201303

May 13th, 2017


The Manager,
Maxbank and Creditors,
Kasturba Gandhi Marg
Rohini, New Delhi 110058

SUBJECT: Allowance to make use of mortgaged property.

Dear Mr. Sinha,

I must make you aware, with great sorrow, of the difficulties I am facing right now. I had taken a loan of Rs. 10,00,000 from your esteemed institution for the financing of my start up regarding congregating street vendors and unionizing them. As you had noted, this idea of gathering and unionizing the street vendors not only provides them a better say in their profits but also creates a recognition for their profession so that their concerns such as harassment by law, cornering by larger organizations, low profits could be addressed. As you would have noted in the latest report of progress sent to you for your kind consideration, we have come a long way since the inception, but we still have a long way to go and currently facing a mounting hurdle.

The vendors need a space in the city to be able to store their produce that they would later sell in the market. The property mortgaged by us as collateral for the loan sanctioned by you seems to be the perfect solution. This will allow us to increase our overall profits thus enabling us to increase the interest rate we are currently paying you. Therefore I request you to consider this proposal of allowing us to make use of our city property as a warehouse for storage while you withhold the ownership and thus gain an 1% increase in the interest rate payment. I have enclosed my loan details and renewed proposed contract for your study.

Thank you for your time and consideration. Awaiting a favorable reply.


Ramesh Dutt

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