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In this tutorial, the speaker discusses the importance of a hardship letter when applying for a loan modification. It explains that the purpose of the letter varies depending on the situation. For loan modification or repayment plans, the letter should convey that the applicant has experienced financial hardship but has since recovered financially. In contrast, if applying for a short sale or deed in lieu, the letter should emphasize that the financial hardship persists and that mortgage payments are unaffordable. Thus, understanding the intent behind the hardship letter is crucial for effectively communicating with the lender.