Underwriter needs an explanation letter

[BytemeCRAS]

about why we filed for BK. Anyone have a link to a sample letter or have a letter they used that worked for them??

 

I'm letter-writing challenged.

 

TIA

 

Byteme

[hegemony]

I just wrote a note TO WHOM IT MAY CONCERN noting that I filed due to economic hardship.

 

Just write a quick letter that says why you filed.

 

no form letter needed for this.

[revans513]

Just state the reason for the BK. It doesn't have to be long, the underwriter wants it for your file, thats all something like:

 

To Whom It May Concern,

 

The reason I (we) filed for Bankruptcy in 2000 was I lost my job and was unable to secure employment for 9 months.

 

Sincerely,

 

Thats all you need. But be honest with you expaination, be brief and to the point and do NOT elaborate.

[rainmand]

When a credit explanation letter is requested, they're wanting to see the bankrutpcy was an isolated event, which you've recovered from, and it won't happen again.

 

Lenders would much rather hear the bankruptcy was caused by unforeseeable misfortunes that were beyond your control. The burden is still on you, however, to persuade the lender the misfortune is very unlikely to recur.

 

For example, the firm you've worked at for 15 years suddenly and without warning went out of business. If you now have a new position, you can make a case this is unlikely to happen to you again. A bankruptcy caused by a natural catastrophe or serious health problem is similar, provided you are persuasive in arguing they were one-time events. Be prepared to back up your story with documents or verifiable details.

 

The letter should be addressed to your Loan Officer (so it doesn't get misplaced). I'll provide an example letter below.

 

 

Your Name

Address Line 1

Address Line 2

City, State Zip Code

 

Date

 

Your Loan Officer's name

Your Loan Officer's Company

Address Line

City, State Zip Code

 

Re: Explanation of Bankruptcy

 

 

Dear "Loan Officer's Name",

 

I am writing to explain the bankruptcy I filed on {date}. I had to file bankruptcy due to a series of unfortunate circumstances to my finances. Please allow me this time to explain.

 

{Explanation}

 

Thank you for taking the time to review my explanation. If you have any questions, please do not hesitate to contact me regarding this letter.

 

Sincerely,

 

Your name

[Marty716]

I wrote a short 2 or 3 sentence note and it was accepted.