With the stimulus package, banks are actively seeking to help homeowners with their financial situation by offering loan modifications. Banks will actually receive $1,000 from the federal government for each successfully completed loan modification. In this way, both sides, the bank and the homeowner, can benefit in this dire economic time.HSBC is one the banks participating in this program. If you are a homeowner facing foreclosure you may qualify for a loan modification. Below are important points to keep in mind when applying:When you run into financial difficulty, write a hardship letter explaining why you are having trouble with your monthly mortgage payment. Your letter should contain the reasons why you cannot keep up with your payment, your income-to-debt ratio and what you have done to keep up with your payments. Furthermore, you will need to have a clear plan as to how you will keep up with your lower monthly payments after the loan modification. You will also have to show that you will not return to a situation where you cannot pay your monthly mortgage payment. Spend time on this letter because it is vital to your application especially if you have already received a Notice of Default.Be approachable and be willing to offer detailed answers to questions from the lenders and the banks. In order to do this, you will need to be prepared with the correct paperwork and notes. You will also need to be persistent, but your attitude is just as important. Read and complete all paperwork careful and ensure they are accurate. If you have misleading information on your documents, you may not be approved for a loan modification.Research the options available to you before you approach your lender. This will allow you to be prepared and allow you to approach your lender with confidence.Under the stimulus plan, your monthly mortgage payment cannot exceed 31% of your gross monthly income.Finally, the department of Housing and Urban Development is offering free financial services to assist you in managing your finances.