I have 13 medical collections on my credit report. These are the only bad things on the report with many more good things showing.
I wasn't sure I could get a refi or loan on one of my properties, but after talking to the Credit Union they told me I should move forward on the loan processing.
Well today the mortgage rep emailed and the loan committee wants a letter of explanation about the medical bills.. I'm taking that as a good sign - at least I hope it's a good sign.
My question is I'm not sure how much or little detail I should go into in the letter. Usually there are specific things they want to see inside these types of letters, certain verbage that they want to see.
I'm looking for some advice on what I should or shouldn't include in the letter.
I am a loan officer and generally I write the letter of explanation's for my client and have them sign and acknowledge them. I do this so that we don't volunteer any information that could cause problems or additional work.
The most important thing with these letters is to keep it simple. People usually feel that they must have a long elaborate letter to justify problems in the past. A good outline would be to acknowledge the collection accounts, BRIEFLY explain the circumstance that caused them, and BRIEFLY show how you have been responsible since them.
Don't lie or mention anything that can not be verified in writing as well.
Hope this helps, if you need any help pm me. Also, I can do loans in all 50 states so pm me if you get stuck.