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I Have Been Battling Lung Cancer And Struggling With My Mortgage. – Andy

“Dear Steve,

Although I have never paid a bill late, I have been unable to continue my one-person business since I became ill one year ago. I have now received treatment for lung cancer, but have had no income for more than a year, have drained all my resources, and, even when I become strong enough to resume my work, it will take time for me to build up my client base again. I have a mortgage and a home equity line of credit with different institutions

What would lenders like to see in a “hardship letter” which would lead them to conclude that they ought to grant loan forgiveness?


Dear Andy,

They’d prefer to see a payment for the entire balance due, but outside of that you really don’t need to send a letter. Instead, just contact the lenders and ask them for the pages and pages of forms you will need to complete for an initial evaluation to see if you might even qualify.

I’m glad you are doing better but if you ever find yourself in a similar position again, don’t spend down your assets first limping along. The typical outcome from that strategy is people wind up out of assets but still in debt.

If your house is worth less now and the home equity loan exceeds the value of your home bankruptcy may be a better option.

Congratulations on your battle against cancer. Glad to see you are winning that one.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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