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It is a letter written describing a borrower's inability to make his or her mortgage payments/loan repayments. It is vital for the letter to include the reasons for the hardship and the future course of action.

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Most homeowners would tell you that they would like to pay off their loans before the term ends. However, some people would find this hard to do because they don't have enough money. Add to that the instability of jobs these days. One day you have a job, the next day you're out of work. This can be highly worrisome. If you know how to reduce your mortgage, then you may not have to stress yourself out too much when it comes to paying off your house.