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Frequent Contributor
UpmyscoreinFL
Posts: 293
Registered: ‎01-12-2012
0

Letters of explanation

Hello. I finally have my loan package and its pretty straight forward.  M mortgage broker does want a letter of explanation for

 

short sale 2009

car late payment 2011

credit card late payments (one card has 2 lates and the other has several)

 

do I write ne letter explaining everything or a separate letter for each issue?

 

 

2009 spouse laid off short sale happened

 

2010, 2011 late payments spouse finally working but 100% commission so rent, utilities, food, child care came first, car payments and credit cards second priority

 

last three late payments on the one credit card baby born, three months maternity leave, spouse still on commission job

 

Spouse finally  went back to a salary job, bills on time for the last 12 months.  Six months ago we separated and also seperated  our finances. Trying to buy a house on my own and I am so close.  

middle score 664 and no late payment for 12 months.

 

Equifax my fico 629
Transunion my fico 669
Experian fako 663
Valued Contributor
JM-AM
Posts: 3,302
Registered: ‎06-09-2010
0

Re: Letters of explanation

Separate LOE for each incident.

Good Luck
May all your dreams and wishes become a reality!
Super Contributor
DallasLoanGuy
Posts: 6,346
Registered: ‎07-03-2007
0

Re: Letters of explanation

seperate letter for each "issue/event"......  (each issue might affect more than one item)

 

1. what happened?

2. how did you deal with it?

3. what steps have you taken to assure it doesn't happen again?

 

 

* While I try to visit the forum often, please feel free to contact me directly with a link to your post if I fail to answer a follow up question.

* Lending across the entire 'Great State of Texas' since 2004
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Letters of explanation

I actually wrote one LOE for all conditions. I put it in outline format and explained why in about 4 or 5 sentences. I had 22 conditions to satisfy. If I wrote one LOE for each, it would have taken much longer. I already had to pull two all nighters to satisfy the conditions by dawn with ONE letter that was signed and dated at the bottom. I had the conditions listed in the same order and number format as what was on my commitment letter. I don't think it truly matters if you write individual LOEs or one big LOE. You will save time and writer's cramp if you write one big LOE. I had 3 rounds of conditions to satisfy so I ended up writing 3 or 4 LOEs for all 22 conditions that was 3 pages long max.

An LOE shouldn't be a novel. You should be able to fit at a minimum 2 or 3 on one page. And if the same reason applies to multiple conditions, write "see item #X" plus add anything additional that applies to that condition but not the other. This will save you time.
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