I have been following this forum for about a month now. You guys are great with the information you provide. I need help, I can't seem to find someone to give me an example letter to go by to explain why we filed bankruptcy in 2001. I don't have a really good reason (illness, death or loss of job), my problem was we were just in way over our heads in bills. I'm afraid if I write that we will be denied because they may think it will happen again even if I tell them it won't. To sit here and write them and tell them why we filed is just frustrating, because there are many reasons. Stupidity on our part, bad bank, cheesie lawyer!!! What more can I say other than this --
In 2001 we were 2 day's late on both car payments from being out of town, and US bank automatically withdrew the payment amounts from our checking account. Unknowingly, my husband made the payments and the bank teller did not inform him they had already took the money out. At this time we did not have online banking so we did not know!! This sent everthing into motion - all my other payments made to my creditors, groceries, and utilities started bouncing, (also before they had bounce protection available) checks were returned to everyone - then we had to not only pay off the checks, we also had to pay the fines and bank fees that came along with it. I found out this all was happening about 2 weeks later, when we received something in the mail from US Bank, so imagine all this time going by thinking we have money in our account and continuing to write checks. I called the loan officer who gave us the loan and she said we needed to read the fine print in our contract, it stated if we are 1 (one) day late, the loan payment would be deducted from our checking account. It took us a few months to get the bounced fees from all the creditors and grocery stores paid off. By this time we were in way over our head's in late bills. We went to a lawyer and filed bankruptcy Chpt 13 payback. We were in this for about a year and a half then transmission went out on one of the cars. With a newborn, and out of work six weeks we called lawyer and he suggested to file Chpt 7.
Can someone tell me if an underwritter will deny due to stupidity on our part?
We are approved through FHA AU, but am being told they need letter of explanation.
