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Affidavit of Hardship: How To, Templates & Examples

How to effectively draft an affidavit of hardship

Financial obstacles can make things tough for people. A deteriorating financial situation can prevent people from paying loan money, close car or education loan, and paying hospital bills etc. In such times, an affidavit of hardship help the people suffering from financial secure their assets like home.

The affidavit of hardship is written to provide solutions. An individual can seek to get adjustment of interest rate, lowering minimum payment amount, suspending due amount, settlement options, modifying loan repayment, and short sale of home or other assets.

Types of affidavit of hardship

Anyone can face life-altering incidents and circumstance which can worsen financial situation of an individual. An affidavit of hardship is an important statement submitted by an individual facing financial difficulty to concerned lending authority. Some of the issues which can force someone to write and submit the affidavit are:

  • Job loss
  • Business closure
  • Illness, injuries, accident
  • Natural disasters
  • Death
  • Divorce or separation

People facing financial hardship often are unaware of the format and basic essentials to write an affidavit of hardship. On the other hand, of such a scenario arises for an individual they must present the affidavit to find solution to the financial difficulty faced. The mortgage or loan repayment terms and conditions are strictly regulated and any kind of loan default can lead to stricter punishment. Thus, the statement of hardship must comply with the above mentioned scenarios to be categorized as hardship.

Tips for writing an effective affidavit of hardship

When an individual faces tough financial situation, they are required to prepare affidavit of hardship. But before doing so  they must think through several aspects of writing a professional and details affidavit that explains their stance.

Here are some important tips that can help in constituting a professional affidavit of hardship.

  1. Create a concise letter and keep the length to minimum. Avoid over-describing and putting in additional facts to prove your point.
  2. Often, the lender wants the affidavit in a defined format. Structure your affidavit as per given instruction for ready acceptability. Don’t invent new aspects.
  3. Explain the hardship faced in a detailed and honest manner. Back the claims of financial difficulties with proper facts.
  4. Avoid usage of too many difficult words or jargons that might confuse the concern authority and delay the process.
  5. Mention a clear action plan or solution in the affidavit of hardship. Give a practical reason for the hardship and suggest an achievable solution before the authority.
  6. If required take help from a financial advisor. Seeking professional advice will help in putting across feasible ways for repayment.

An affidavit of hardship should be professional, personalized and direct to be considered. After the affidavit is submitted, there can be chances of waiver under severe financial difficulties. If an individual is seeking financial help for professional handling of their loan repayment procedure, they should explain all about the hardship to their advisor. List down all situation and financial obstacles faced as per the guidelines defined by the government in United States of America. This will help in justifying the position in which the affidavit submitter is facing.

Main elements in an affidavit of hardship

To write a concise affidavit of hardship, the requester must include all the information with integrity and cover all the aspects of the loan. Normally, an affidavit of hardship contains following elements:

  1. Name, address, phone number
  2. Loan number and information
  3. Short introduction on hardship
  4. Statement on solution proposed

It is recommended to write the rough draft first. Include all the elements and ensure that all the details of the loan and loan repayment solutions are clearly outlined. An affidavit of hardship is the only way to elaborate what kind of hardship an individual is facing. More professional and direct the affidavit is, the more it will be considered as an original document for  or modification of loan amount.

Samples of affidavit of hardship

The affidavit of hardship can be written directly by the individual or their hired financial advisor or attorney. Here are the samples for affidavit of hardship as per the types of financial crisis faced.

An affidavit of hardship in Job loss

Name: (Full name)

Address: (Address)

Email Address: (Email Address)

Phone Number: (Phone Number)

Sir,

This letter is written to explain the financial situation that I am going through at present. As I owe a repayment of loan number <mention number> taken on <date of loan issuance> to the company <name of the lending firm>, I have information to share.

When the loan was taken my financial situation was better and I was working with <company name> as a <designation>. When the company faced sudden financial upheavals due to market shift, they were forced to cut pays and also cut down the strength of the employees. Unfortunately, the position on which I was working was removed and resulted in my loss of job. Since, this is scenario none of us expect but are required to face, I request the <name of the lending firm> to consider my affidavit of hardship due to job loss. I am also attaching the email response received by my previous employer as a proof of claim made.

On the basis of this scenario, I am also attaching a payment modification proposal. I would like it to consider for allowing me more time to close the loan payment and avoid foreclosure of the loan.

Sincerely,

Borrower’s Signature and date

Co-Borrower’s Signature and date

Sample #1 for Affidavit of Hardship

An affidavit of hardship in Business closure

Name: (Full name)

Address: (Address)

Email Address: (Email Address)

Phone Number: (Phone Number)

Respected Sir,

This letter is written to explain the financial situation that I have faced due unexpected business losses and the loan modification required. I have taken a loan from the company <name of the lending firm> with loan number <mention number> taken on <date of loan issuance>. The repayment schedule is defined as per the loan agreement,

However, I am going through tough financial phase right now. My business registered on <date> with name <business name> has been forced to shut. I am required to make arrangement to clear the pending dues to work force, lenders and associates before the final closure. Due to severe and irrecoverable losses in my business, I am not in a situation to pay back the loan amount. The current financial situation that I am facing is quite distressful for me and my family.

On the basis of this scenario, I am also attaching a payment modification proposal and would like it to consider for allowing me more time to close the loan payment.

Respectfully,

Borrower’s Signature and date

Co-Borrower’s Signature and date

Sample #2 for Affidavit of Hardship

An affidavit of hardship in Illness, injuries, accident

Name: (Full name)

Address: (Address)

Email Address: (Email Address)

Phone Number: (Phone Number)

Respected Sir,

This letter is written to bring in your notice on the financial situation that I am going through at present. As I owe a repayment of loan number <mention number> taken on <date of loan issuance> to the company <name of the lending firm>.

I regret to inform the authorities that the looming financial crisis due to an unfortunate accident of my husband <spouse name> has pushed us into a difficult situation. My spouse is likely to go through a spine correction surgery in the coming month. To address this medical emergency and payment of medical bill has shaken the financial strength at our end. We have been required to make extra expenses and majority of planned expenses have been pressed into payment of medical emergency bills. I am attaching the details of my spouse’s medical report, who also happen to be the sole earner of our family.

On the basis of this scenario, I am also attaching a payment modification proposal and would like it to consider for allowing me more time to close the loan payment.

Respectfully,

Borrower’s Signature and date

Co-Borrower’s Signature and date

Sample #3 for Affidavit of Hardship

An affidavit of hardship in Natural disasters

Name: (Full name)

Address: (Address)

Email Address: (Email Address)

Phone Number: (Phone Number)

Sir,

I am writing this letter to explain the financial obstacles that I am facing at present. And the loan repayment of loan number <mention number> taken on <date of loan issuance> from the company <name of the lending firm>.

I would like to present my case of inability to repay the loan amount for specific period starting <start date> and <end date>due to cyclone that left my home and personal assets battered. The cyclone which unleashed in the state last month, devastated me and my family and has robbed us of our assets. It has also pushed us into financial distress and we are now on state benefits for most of our needs. The home, vehicle and personal assets have suffered severe loss. I am forced to direct my earning towards building personal assets from scratch. This uncalled financial emergency has put immense financial strain on me.

As a reason, on the basis of this scenario, I seek to get some financial relief from the company. I am also attaching a payment modification proposal and would like it to consider for allowing me more time to close the loan payment.

Respectfully,

Borrower’s Signature and date

Co-Borrower’s Signature and date

Sample #4 for Affidavit of Hardship

An affidavit of hardship in Death

Name: (Full name)

Address: (Address)

Email Address: (Email Address)

Phone Number: (Phone Number)

Sir,

I hereby write this letter to explain the impending financial situation that is I will face, due to sudden demise of my husband <spouse name> on <date>. My husband had taken a loan from the company <name of the lending firm> with loan number <mention number> taken on <date of loan issuance> for buying home in <complete home address>.

When the loan was taken, my husband was healthy and fit as all medical documents were submitted to the company <name of the lending firm>. Unfortunately, his sudden demise due to cardiac arrest has left me wondering about the loan repayments. After this, I <name of person> am the sole responsible person and legal heir of my husband’s assets.

I am into a sudden financial situation where all the details are yet not clear to me. Therefore, with the help my financial advisor I would like to request the <name of the lending firm> to consider my affidavit of hardship, owing to demise of my husband. I am attaching the loan documents of the home in question here. And will also make an honest plea before the authority to allow me sometime and avoid foreclosure in this situation.

Respectfully,

Borrower’s Signature and date

Co-Borrower’s Signature and date

Sample #5 for Affidavit of Hardship

An affidavit of hardship in Divorce or separation

Name: (Full name)

Address: (Address)

Email Address: (Email Address)

Phone Number: (Phone Number)

Sir,

With this letter I would like to present my case and the financial situation that I am in right now. To the firm <name of the lending firm>, I need to make repayment of loan with loan number <mention number> taken on <date of loan issuance.

At this point in time, I am going through a personal tragedy. I am parting ways with my partner of 15 years and in sudden wake of incidents, I feel deeply impacted. Due to this scenario, I am required to settle a hefty and unplanned amount to my spouse as divorce settlement. Being a single earning member of my family and having only one source of income, I find myself with sudden burden of financial settlement to be done. As a reason, this affidavit of hardship is presented to you to help me find a practical solution to the impeding financial crisis that I am facing.

I am attaching the documents of divorce and settlement sought by my spouse. Also, attaching the loan payment modification proposal along with the loan documents with this letter. I would like you to consider repayment through mutually agreed upon terms and avoid any kind of foreclosure.

Respectfully,

Borrower’s Signature and date

Co-Borrower’s Signature and date

Sample #6 for Affidavit of Hardship

Concluding words

In dire circumstances, high numbers of people seek the way to file affidavit of hardship which can protect an individual from serious financial losses and foreclosure. The affidavit not only provides protection to the individual but also aims to find practical solution to repayment of loan. Getting financial advice from a practicing attorney can also be beneficial in putting forward a practical case in front of the lenders.

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