What is a Hardship?
Reduced Income or Unemployment.
Inability to work due to health reasons.
Separation or Divorce.
Death of a Spouse.
Adjustment in mortgage payment or unforeseen increase in your monthly expenses.
Any other circumstance that cripples your ability to repay your mortgage.
Additional info added by hardshipletters: One thing many people don't realize is that if they've had to care for an ill relative (like your parents, children or spouse) that can be counted as hardship, as well. This often results in inability to work full-time and also in extra expenses.