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Help! - Explanation of Derogatory Info for Underwriter

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Help! - Explanation of Derogatory Info for Underwriter


   I have been provided a "work sheet" of sorts from my LO that contains all of my derogatory information from my credit report. It provides 2 lines for "Explanation" and 1 line for "Outcome". 


I have a couple questions. Thank you for your time and advice/information.


1) I have a small Unpaid charge off (First Premier) that the LO told me not to pay at this time. It's for $485 and was charged off on 9/09.

          - How do I explain this outside of "I was young and stupid and ignored this. Now that it's so old I'm just waiting for it to fall off" ... ?


2) I have a paid charge off from around the same time (2/10) from Credit One which got sold to LVNV (I settled with LVNV for less than full) coming in as 2 different issues.

        - Same question as above for the Credit One line, and then for the LVNV "I paid this as soon as I was able" is the best I can think of.


3) I have 2 30 day lates from a Rogers Jeweler's account from 07/13 and 10/13 .. I was getting married at  the time and things were hectic. In all the mayhem I forgot to make the payments on both those months. Right after I got married I paid this account off in full and closed it. Is that sufficient explanation? 



I read the detailed LOE in the example thread, but that doesn't seem to be what my LO wants since she provided me with a worksheet. Please any help/advice you could give would be much appreciated.


Thank you!

Message 1 of 3
Community Leader
Super Contributor

Re: Help! - Explanation of Derogatory Info for Underwriter

I'd say screw the worksheet, create your own LOE.  I've seen that worksheet and it doesn't give you a lot of room to explain.  Just make sure you address all items listed on the worksheet.

You need to explain:

1.  What happened

2.  Why it happened

3.  What steps you have taken to make sure it's not likely to happen again

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Message 2 of 3
Senior Contributor

Re: Help! - Explanation of Derogatory Info for Underwriter

I agree with Shane's recommendation ... craft your own explanation covering the three points he listed and you will be fine.

Message 3 of 3
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