What a hardship request is and who handles it
A hardship request in Texas is a formal notice to your lender, servicer, or creditor that you are facing financial difficulty and cannot make your regular payments on time. You send it directly to the company holding your loan or account — not to a government office. The servicer or lender then has a legal obligation under federal rules to review your situation and consider options like payment plans, forbearance, or loan modification.
In Texas, hardship requests are handled by the loan servicer — the company that collects your monthly payments. This may or may not be the bank that originally issued your loan. If you have a mortgage, your servicer is listed on your monthly statement. If you have a car loan, credit card, or student loan, the servicer information appears on your bill or account online.
The process is governed by federal rules, particularly the Consumer Financial Protection Bureau (CFPB) regulations and the Dodd-Frank Act. Texas state law does not create a separate hardship process; instead, federal protections explore to all borrowers in the state.
Key Takeaways
- A hardship request is a written notice to your lender or servicer stating you cannot pay on time, and it triggers a legal review of your options.
- You send the request directly to your loan servicer — the company that collects your payments — not to a government agency.
- The servicer must respond within 15 days and consider forbearance, payment plans, or modification; they cannot ignore your request or when ready foreclose or repossess.
- You will need to provide proof of your hardship (job loss, medical emergency, reduced income) and your current financial situation.
- Hardship requests work differently for mortgages, car loans, and credit cards, so the steps and timelines vary by loan type.
How to write and send a hardship request
Start with a written letter addressed to your servicer's loss mitigation or hardship department. Do not call; a written record protects you. Your letter should include your loan number, the property address (if a mortgage), your name, phone number, and email. State clearly that you are requesting consideration for hardship options because you cannot make your full payment.
Describe your hardship in plain terms: job loss with the date you lost employment, a medical emergency with the cost, a death in the family, a significant reduction in income, or divorce. Include the month you first missed a payment or expect to miss one. Keep the description factual and brief — one or two paragraphs is enough.
Mail your letter to the address listed on your statement under "Payment" or "Servicer Contact." Many servicers also accept hardship requests through their online portal or by email to a hardship department address. Check your statement or the servicer's website for the exact mailing address or email. Send it by certified mail with return receipt so you have proof of delivery.
Include copies (not originals) of documents that support your hardship: a termination letter from your employer, a medical bill, a divorce decree, or a recent pay stub showing reduced hours. Do not send originals; servicers often lose them, and you may need them later.
What happens after you send a hardship request
The servicer must acknowledge receipt of your request within 15 days. This acknowledgment should include the name of a point of contact and a timeline for review. If you do not hear back within 15 days, follow up with a second letter referencing your first one and the date you sent it.
During the review period — typically 30 to 60 days — the servicer will assess your income, expenses, and the reason for your hardship. They may ask for additional documents: recent pay stubs, tax returns, bank statements, or a detailed budget. Respond promptly to these requests; delays can slow the review.
The servicer must then offer you at least one option before they can proceed with foreclosure (for mortgages) or repossession (for auto loans). These options typically include forbearance (temporarily pausing or reducing payments), a payment plan to catch up over time, or a loan modification that changes the terms. They will send you a written offer with the new payment amount and terms.
You are not required to accept the first offer. You can ask for clarification, request a different option, or ask for more time to decide. However, if you reject all offers and do not resume payments, the servicer can resume collection or foreclosure proceedings.
Hardship requests for mortgages in Texas
If you own a home in Texas and cannot pay your mortgage, a hardship request is your first step to avoid foreclosure. Texas is a non-judicial foreclosure state, meaning the lender can foreclose without going to court — but they must still consider your hardship request before doing so.
Send your request to your mortgage servicer at least 120 days before a foreclosure sale is scheduled. If a sale date has already been set, send it when ready; the servicer must pause the sale while reviewing your request. Include your loan number, the property address, and the reason you cannot pay.
Common options for mortgage hardship include a loan modification (changing the interest rate or term to lower your payment), forbearance (pausing payments for 3 to 12 months), or a repayment plan (adding missed payments to future months). Some borrowers also explore refinancing or selling the home, though these are not servicer options.
If you are behind on payments, the servicer may require you to bring the loan current as part of any agreement. Ask whether the modification or plan allows you to add arrears (back payments) into the new arrangement rather than paying them upfront.
Hardship requests for auto loans in Texas
If you cannot pay your car loan, a hardship request can prevent repossession. Send it to your lender or servicer as soon as you know you will miss a payment. In Texas, lenders can repossess a vehicle without a court order if you are in default, so acting early is important.
Your request should explain why you cannot pay: job loss, medical bills, reduced income, or temporary hardship. Include your loan number, vehicle identification number (VIN), and the current status of your account (whether you have missed payments yet).
Lenders typically offer forbearance (skipping one or two payments), a payment plan to catch up, or loan modification. Some lenders will also discuss a voluntary surrender (returning the car to avoid repossession) or refinancing with a lower payment. Ask what options are available before the lender moves to repossess.
Hardship requests for credit cards and unsecured debt
Credit card companies and other unsecured lenders are not required to follow the same hardship rules as mortgage and auto lenders, but many have hardship programs. Call the number on your statement and ask to speak with the hardship or financial hardship department. Some card issuers have online forms or portals for hardship requests.
When you contact them, explain your situation: job loss, medical emergency, or reduced income. Ask what options they offer. Common responses include a lower interest rate, a payment plan, or a settlement for less than you owe. Get any offer in writing before you agree to it.
Credit card hardship programs vary widely by issuer. Discover, American Express, Chase, and Bank of America all have programs, but the terms differ. If the card issuer denies your request, you can still negotiate directly or seek help from a nonprofit credit counselor.
What to do if your hardship request is denied
If the servicer denies your request or offers only an option you cannot afford, you have the right to ask why. Request a written explanation of the denial. Under federal rules, the servicer must explain which documents were missing, which income requirements you did not meet, or which other reason led to the denial.
You can then submit a new request with additional information or documents. If your situation has changed — you found a job, received a settlement, or your hardship has eased — include that information. A second request sometimes succeeds where the first did not.
If the servicer continues to deny your request or you believe they violated federal rules, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. You can also contact a HUD-approved housing counselor (for mortgages) or a nonprofit credit counselor for guidance. These services are free.
Frequently Asked Questions
Will a hardship request hurt my credit score?
A hardship request itself does not hurt your credit. However, if you have already missed payments before sending the request, those missed payments are already on your credit report. Forbearance, payment plans, and loan modifications may be reported differently depending on the servicer, so ask how the option you choose will appear on your credit report.
Can the servicer foreclose or repossess while reviewing my hardship request?
No. Once you submit a hardship request, the servicer must pause foreclosure or repossession proceedings while they review it. However, you must send the request in writing and have proof of delivery. A phone call alone does not trigger this protection.
What if I cannot afford any of the options the servicer offers?
Ask the servicer to reconsider or to explain which part of their calculation you dispute. If you believe your income or expenses were calculated incorrectly, provide updated documents. You can also seek help from a HUD-approved housing counselor or nonprofit credit counselor, who can sometimes negotiate on your behalf or suggest alternatives.
How long does a hardship request take to resolve?
The servicer must respond within 15 days and typically completes review within 30 to 60 days. If they ask for more documents, the timeline may extend. During this time, continue making any payments you can; this shows good faith and strengthens your case.
Do I need a lawyer to submit a hardship request?
No. You can submit a hardship request on your own. However, if foreclosure is already underway or you are unsure about your options, a lawyer or HUD-approved counselor can review your situation and help you understand what to expect. Many offer free or low-cost consultations.