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Old 06-26-2015, 11:09 AM
 
5 posts, read 12,127 times
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The underwriter is requesting me write a letter explaining 6 items on my credit report . Explaning in detiail how each one was late . What have happen was I talk to a debt settlement company and was advise to stop making payments so they are able to make settlement for my account . Even tho they want separate letter explaining each items . Can I write one letter explaining all 7 items since it all happen at the same time for the same reason. How do this work

Can some one help me
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Old 06-26-2015, 11:27 AM
 
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You can pretty much cut and paste the exact same letter, substituting each account for each different one.
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Old 06-26-2015, 11:35 AM
 
Location: Phoenix, AZ > Raleigh, NC
14,297 posts, read 17,491,099 times
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Just for kicks, I gotta ask: What's your credit score?
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Old 06-26-2015, 12:04 PM
 
Location: Phoenix, AZ area
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Quote:
Originally Posted by Jkgourmet View Post
Just for kicks, I gotta ask: What's your credit score?
6 late items and he needed debt consolidation to pay for them at all so it is likely mid to high 600s, 640 is the min on most mortgages.
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Old 06-26-2015, 12:18 PM
 
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Your Loan Officer should guide you with this. The Letter of explanation is just a formality.
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Old 06-26-2015, 07:49 PM
 
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My credit sore isn't the problem . It's pretty decent about 670 .
Only thing I'm worry about is letter of explanation.
He sent me some papers that list each individual negative items and some lines to put explanation
I put my one explanation and for the other 5 I wrote "same as above "

This what my loan officer told me .

Good morning Tam,
I understand your concern for the Derogatory Credit Letter of Explanation. What I can tell you, everyone who has any derogatory credit items will complete this document for underwriting and it is part of the process to get your loan approved. We understand these accounts fell in the bankruptcy and were cleared by the court, however for an underwriter this is your responsibility to detail why each account listed fell derogatory. The underwriter is going to approve your loan if everything makes sense and fits in the guidelines. I have closed many loans with bankruptcies both 7 and 13. If your explanation is reasonable and your credit has shown signs of strength and stability since the BK, this will help the underwriters in their position to approve your loan. Thank you for time and effort sending everything you have.

Unfortunately we will need more detailed answers on the Derogatory LOX more than “included in BK” and “same as above”. The underwriter would like to know why each item became derogatory. Please complete the document adding an explanation for each item and sign, date and return so we can finish this task. Have a good day!
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Old 06-26-2015, 07:54 PM
 
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The problem I have is

"The underwriter would like to know why each item became derogatory. Please complete the document adding an explanation for each item"

I went to debt settlement company 5 years ago and was advise to stop making payment in order for them to try to settle my accounts .
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Old 06-26-2015, 08:28 PM
 
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You don't write "same as above." Write "I went to debt settlement company 5 years ago and was advised to stop making payments in order for them to try to settle my accounts ." Every time. Separately. For each separate account. No "same as above."
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Old 06-26-2015, 09:31 PM
 
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I don't know if this pertains to mortgages, but I know in security clearance checking, when a debt settlement occurs they want to know exactly why the person went to a debt settlement instead of just paying what they owed as they owed it. They derogatory info isn't just being late with the payment so it could be settled, its also why you chose to use a settlement for that specif account. Once again, not sure if that's what they want but I suspect its about why debt settlement for that account and not just "because I was told to do it" so I can get a settlement.
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Old 06-26-2015, 10:06 PM
 
Location: Phoenix AZ
5,920 posts, read 10,437,079 times
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Quote:
Originally Posted by Rabrrita View Post
I don't know if this pertains to mortgages, but I know in security clearance checking, when a debt settlement occurs they want to know exactly why the person went to a debt settlement instead of just paying what they owed as they owed it. They derogatory info isn't just being late with the payment so it could be settled, its also why you chose to use a settlement for that specif account. Once again, not sure if that's what they want but I suspect its about why debt settlement for that account and not just "because I was told to do it" so I can get a settlement.
not necessary for mortgages - you can write "my cat needed chemo", "I was addicted to hookers, but I'm better now", whatever you want- no one reads them, they stuff them in the file. Use your imagination & just have fun with it. Tell them how you invested in a genetic-engineering startup attempting to grow wings on pigs, you were attempting to corner the market in your metro area, by buying all the strawberry frosting.. might as well make them entertaining.
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