The truth, but keep it simple and by all means try to avoid comments like “you received a bail out”, or “you caused this mortgage mess.” We usually ask people to make an initial draft and outline everything that happened that brought them to this point.  Begin by trying to answer the question “What has changed in your expenses, income, or mortgage payment since you obtained the loan?”

It also helps to write the letter after completing a detailed financial worksheet.  We usually recommend the letter is no longer than 1 (one) page.