topic Re: Underwriter Letter of Explanation? in Mortgage Loans

Underwriter Letter of Explanation?

CreditGuy03 — Mon, 27 Apr 2015 16:17:40 GMT

My underwriter is requesting a letter to explain any dergos in the past 24 months.

I have two derogs in the past two years but it was due to me not paying the bill. What do I say? "Umm yea that was charged off because they closed my account because the sky was blue outside and I saw no incentive for me to pay on a closed account"

Re: Underwriter Letter of Explanation?

CH-7-Mission-Accomplished — Mon, 27 Apr 2015 16:24:39 GMT

I'm sure this is a rhetorical question, but I will bite.

I was a mortgage underwriter years ago. These letters are documentation for the file that permit them to approve your loan when they could decline it. You need to make their job easier and give them cover to approve your loan.

This is like when somebody says, "Hi, how are you?" The approrpiate response is, "Fine, you?"

Don't give a flip response. Explain what happened and more importantly why it's not going to happen again.

Sometimes you just have to say what is expected.

Re: Underwriter Letter of Explanation?

CreditGuy03 — Mon, 27 Apr 2015 16:28:05 GMT

Well my explanation is the truth. I just didnt feel like paying. Is this something that will get me denied? How do you word it so it isn't so negative

Re: Underwriter Letter of Explanation?

ezdriver — Mon, 27 Apr 2015 16:40:12 GMT

@CreditGuy03 wrote:
Well my explanation is the truth. I just didnt feel like paying. Is this something that will get me denied? How do you word it so it isn't so negative

If that is the explanation that you wish to submit to the underwriter, then go for it.

Such explanations should consist of:

1) What happend.

2) Why it happened.

3) What has been done to prevent it from happening again.

Re: Underwriter Letter of Explanation?

CH-7-Mission-Accomplished — Wed, 29 Apr 2015 04:51:59 GMT

When I was a mortgage undwriter we always referred to LOE's as "any lie in print."

Brutal honesty is not always required. If you have a spouse, you probably understand this.

I guarantee you, if you tell a mortgage underwriter that you just didn't feel like paying your bill, they will decline your loan. Lates within 24 months of a mortgage loan is grounds for a denial.

I don't know if it's a 30 days or a charge-off because you don't say, and is it two accounts?

Willful failure to pay your bills on time is absolute gorunds to decline your loan. If I were underwriting it, I would decline you.

That underwriter is a first-line person with the power to grant or deny your loan. He or she has multiple levels of supervisors and then the ultimate investors, FNMA, FHA, auditors, bosses. They are subject to losing their job.

This is no time to be {Mod cut. No need to say that}. Not if you want to get a mortgage.

Re: Underwriter Letter of Explanation?

Anonymous — Mon, 27 Apr 2015 17:29:07 GMT

Just go ahead and write that in the letter, tell them the truth. Let us know how it goes. Lol

Re: Underwriter Letter of Explanation?

Anonymous — Mon, 27 Apr 2015 18:31:57 GMT

This is most likely a troll thread, but I'll bite...

Your attitude makes me question your responsibility, and whether you should be thinking of entering into a mortgage in the first place. "I just didn't feel like it" isn't an appropriate response, and you know it.

Re: Underwriter Letter of Explanation?

Anonymous — Tue, 28 Apr 2015 23:49:55 GMT

The Creditguy just said-

"Well my explanation is the truth. I just didnt feel like paying."

That's awesome.

Re: Underwriter Letter of Explanation?

Anonymous — Wed, 29 Apr 2015 00:59:02 GMT

Maybe OP is Peter from Office Space.

Yeah, I don't like my job very much so I'm just not going to go any more. What about your bills? I never really liked paying bills so I'm just not going to do that any more.

Worked out for the guy in the movie. Good luck!

Re: Underwriter Letter of Explanation?

Anonymous — Wed, 29 Apr 2015 01:16:56 GMT

@CreditGuy03 wrote:
Well my explanation is the truth. I just didnt feel like paying. Is this something that will get me denied? How do you word it so it isn't so negative

If you really want the mortgage, don't be blunt with your reason as stated - I just didnt feel like paying. Word it in a way that will be acceptable and not get you declined.