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Letter of Explanation


The last post in this topic was posted 4619 days ago. 


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So, I can't really decide if this belongs here or in the mortgage forum, but I really need to get writing this, so I did both.


I'm soooo close to buying my first home. Finally got my scores up from 480's to mid 600's.


My problem is I have a few accounts still on the reports. Less worry-some are JB Robinson Charge off for $494 and 1FBUSA Charge off for $1600.


I have to write a letter of explanation for those and for three accounts originally owned by Sears, but now owned by LVNV Funding. There are three accounts from LVNV. I have been fighting with them for a very long time now. They are not even reporting as collection accounts. They are reporting as open accounts with balances. I managed to get them off of TU and EX, but EQ just came back with verified; no change.


Anyway, I'm not looking for advice on how to dispute them or anything. The way it is now is the way it's staying. It's too late for that. What I am looking for is advice on how to explain these accounts to an Underwriter? Do I say that they are collection accounts?


Basically, they have a balance and that worries the UW. They want to make sure they won't sue me for the money or anything. Do I explain in the letter that if they ever tried to come after me for the money that I have so many violations against them that I'd come out the winner, or do they not care about that?


I get that I should be honest and say it how it is (or was) I just don't know how to explain an account that is reporting completley wrong.

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Be honest (i.e. you had a temporary financial hardship at the time the debt was originally incurred, or had hospital bills that were not manageable, etc.) and just keep it brief and to the point.

+1 The way I worded mine was in such a way as to explain what caused it, what I did to resolve it, and why it is unlikely to occur again in the future.

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Letters of explannation should always address the following:

  • What happened
  • Why it happened (Job loss, illness, death in family, etc)
  • Why it will never happen again (Built up savings, more stable job, etc)


You need to write an honest letter and keep it short, simple and to the point. For revolving or installment accounts, not receiving a statement from the creditor is generally not an acceptable reason for being late.

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The last post in this topic was posted 4619 days ago. 


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