letter for late pays

[Becky20fan]

Okay, I need to see if anyone can give me some quick advice...

 

I'm applying for a home loan, and got an email from the mortgage guy that the underwriters don't want to approve the loan due to a late payment on three credit cards, one in 11/02, one in 10/02, and one in 3/03. My mortgage person said that with a good explanation letter they may approve it...

 

Anyone have suggestions? To be honest, I don't know why they were late. All were fairly low payments (two are $10 payments and one is $70). I had the money, but it must have gotten overlooked. If anyone can help me, I'd GREATLY appreciate it! If I can get them a letter in the next hour or two, they can still possibly approve it today... :?:

 

Thanks!!!

[Becky20fan]

Can anyone look at this draft I made and give me your opinion on if this letter is okay for explaining these lates....

 

 

 

To Whom It May Concern:

 

I sincerely thank you for considering my husband and I for a mortgage. We are very excited about this home that we’re trying to purchase, and we envision ourselves living in this home for years, and possibly starting a family there in several years.

 

I am writing this letter to explain some late payments that are on my credit report in late 2002 and early 2003. First of all, let me apologize for not being more responsible in these payments. At the end of 2002 (late September), my husband and I sold our home in Illinois and my husband moved with our family pet to Arizona, while I stayed in Illinois with family to settle some prior work commitments. During the months of October and November, things were very hectic with getting my husband settled in Arizona and dealing with a long-distance move, coordinating movers, locating a storage facility, and having my husband’s vehicle transported from Illinois to Arizona. I was negligent in getting my mail forwarded, which resulted in my Sears and Citibank credit card payments being delinquent. I didn’t realize that I hadn’t received my bill until I received notice that it was 30 days late. The issue was not the lack of funds – the payments were fairly low ($20 for Sears and $100 for Citibank). It was simply overlooked during the chaos of a long distance move.

 

The third payment that was late, Capital One in March 2003, was due to a problem with our internet connection. I always pay my Capital One bill via the internet. We had recently gotten our computer hooked up, and I submitted my payment online (or so I thought). It turned out that the payment had not gone through, and I also did not find out that the payment was never processed until it was past the 30 day late mark. Again, lack of funds was not the issue, as the payment was less than $20.

 

During this home buying experience, I have come to realize how much irresponsibility with finances affects our daily lives. Being irresponsible with our payments caused our credit scores to be on the low end, which can cause us several hundred dollars a month in higher interest rates on loans and credit cards. Since the time of these late payments, I have come up with a system which logs each bill when it is received, due date, amount of payment, and I put these dates in my calendar on my computer so it prompts me a week before the due date to mail the payment. I also have logged the payments that I should be receiving on a monthly basis so I will be immediately aware if I do not receive a bill that I am expecting. I feel that these changes in my system will make me more responsible in respect to paying our bills on time, and keep our credit reports clean from this point forward.

 

I sincerely hope you will reconsider us for a loan. We look forward to proving to you that we are now responsible consumers and will be on time with our payments for our mortgage as well as all our other debts.

 

Sincerely,

[BizCredit]

A classic!!! that should be added to the archive!!!!

 

Looks phenominal!!

[Becky20fan]

Thanks so much for the vote of confidence - I was so afraid to say the wrong thing - so much is riding on this letter and the reaction of the underwriter that reads the letter. I'm praying it gets approved!!! Don't want to have to try for sub-prime!!!

[BizCredit]

one thing I have seen with mortgage clients with late pays...

 

don't ever say "I am in the process of getting the lates removed"... or anything along those lines... because then the underwriter has an opening to say "let's wait until the late is deleted"....

 

so always try to keep away from "I will be getting a letter from the CCCompany", etc...

 

your letter is purrrrfect, IMH(aughty)O. :):)

[Becky20fan]

I just hope the underwriter that reads this letter feels the same way as you do!!!

 

I'm praying, praying, praying real hard!!! My mortgage guy said he thinks he can get an answer today.... Deep breaths...

[Becky20fan]

I heard from the mortgage person - they said they haven't gotten my rental history back yet, but as long as that comes back okay, and we go through some home buyers education course, we're approved!!!

 

Thanks for all your advice! I'm so relieved!