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In this tutorial, the speaker discusses the importance of tailoring a hardship letter when applying for a loan modification, short sale, or deed in lieu. For a loan modification, the letter should convey that, despite previous financial hardships, the applicant has recovered and is now in a stable financial position. Conversely, if seeking a short sale or deed in lieu, the hardship letter should emphasize the ongoing struggle with financial recovery, illustrating that mortgage payments remain unaffordable. Understanding the different purposes of these letters is crucial for effectively communicating with the lender.