topic Letter of Explanation Derogatories / Charge-Offs in Mortgage Loans

Letter of Explanation Derogatories / Charge-Offs

AutoBot — Tue, 06 Dec 2016 10:39:03 GMT

So my lender is asking for 2 letters of explanation for 1)all derogatories on credit report and 2)2 charge-off accounts. What are they looking for with these letters?

1- Yes these late marks are mine. Yes these charge-offs are mine. Yes I wish they didn't happen. Yes I plan to avoid this happening in the future.

2 - I take full responsibility for the late marks and charge-off accounts on my credit report between XXXX and XXXX. My wife is a cancer survivor and early on during the first few years we experienced a heavy financial burden with high medical costs and reduce income. As a result, some of our financial obligations suffered. We have since taken steps to ensure medical expenses will no longer be a burden.

So which one? Both are true statements.

Re: Letter of Explanation Derogatories / Charge-Offs

Anonymous — Tue, 06 Dec 2016 13:42:19 GMT

When my ex and I purchased our home he had the same type of information on his report and the lender wanted letters as well. We just sent in letters explaining why that was showing on the report. So if it was a missed payment we explained why the payment was missed etc.

Re: Letter of Explanation Derogatories / Charge-Offs

DallasLoanGuy — Tue, 06 Dec 2016 14:14:01 GMT

here is the format for your letter. be honest.

1. what happened?

2. how did you deal with it?

3. what steps have you taken to ensure that it is unlikely to happen again?