Need help with with LOE

[teddingt]

Okay I will be brief......Okay in Feb. was trying to get a loan a USDA guaranteed.  I made it through lender underwriting and going through GUS but could not clear CAIVRS.  

I cleared everything up with my student loan and I am no longer in default.  I started a new loan with a different lender and now I need a LOE explaining why I was sent through GUS in Feb..  Can anyone guide me on what the wording should be.   I really don't want to say due to having a defaulted loan.

Thanks 

Tracy

[HoldingOntoHope]

With any LOE the truth is always the best. No reason to make a drama out of it. My loan was in default due to ____, I did ___ to clear the default and my plan going forward is ___ to ensure I stay current. The LOE is just to make the underwriters feel comfortable that the situation will not repeat.

[teddingt]

The new underwriter has no clue about the default,   She/He wants to know about why I was ran through GUS.   Do I tell them about the default?

[HoldingOntoHope]

The best policy will still be to disclose the prior default as the reason for that. They are not going to hold the default against you if it has been cleared / rehabbed. But it is better to be upfront than to have them discover the information later somehow and go "OHO Lookee here". I know there were a lot of questions to answer on my mortgage application and I'm pretty sure defaulted government debt (even in the past) was one of them.

Proceed forward with faith. It will work out OK.

[teddingt]

thank you