my mortgage lender has requested I write a letter explaining some negative items on my credit report.. help?
The only negative items that I have on my credit are medical bills that my wife and child acummulated when we did not have health insurance. Thankfully we now have health insurance.
I have indicated this to my mortgage lender and they are asking me to write a letter of explanation regarding this.
Since I want the letter to be 'perfect' and completely what the lender wants, can you point me to a sample letter on the net or suggest ideas?
- loanmasteroneLv 71 decade agoFavorite Answer
There is really not a perfect, just a truthful letter. Explain to the lender that at the time your wife and child were ill and had to be under doctor's care you were not able to pay the medical debts that were accumulating because you did not have health insurance nor were you covered by a HMO.
Since then I have not acquired health care for my family, this problem should not exist again.
If this is the truth of what happen something along this line would work.
Most lenders know and understand that individuals will go to the hospital or medical center to get well even if the have no money or health insurance.
If you are in contact with the medical people to pay this debt,or make payments on the debt say so, if not then leave this out.
I hope this has been of some use to you, good luck.
- 1 decade ago
I don't know of a sample letter. Just put in writing exactly what you stated above. Give the dates when you were without health care(thanks, Bush!) and indicate the medical bills were part of that problem. As long as the rest of your credit is in good shape, you'll be fine. Most mortgage lenders don't count medical bills as a serious issue, they just want some documentation. They are MUCH more worried about late payments on credit cards or other bills. I once saw a loan be declined due to a $1.52 library fine that was turned over to a collection agency!
- 1 decade ago
As everyone has said, you only need to give your honest (and brief) explanation for the instances they are asking about. As stated by others, you can pretty much just explain it was medical bill from when you didn't have health insurance, and that now you have it.
Here's what you should know, though! The reason they are asking you for that letter is because the person at the lender who is in charge of your file needs to cover his/her fanny in case your loan ever goes bad someday.
If they are asking you for a letter, it means you're going to get your loan. But they need you to document a reasonable explanation for the bad credit items so that if ever you fail to pay your mortgage, the person who is handling your file right now can show he/she did the proper due diligence on you and he won't get fired. I'm serious.
So just tell them briefly what happened, sign your name, and there you go.
- 1 decade ago
Most lenders frown on any charged off debt. Even if it's paid, that want a valid explanation (no lies) as to what occurred. Remember, this goes in their file as to why they either decided to approve or not. The Sallie Mae website (for student loans) has excellant information about managing credit.
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- 1 decade ago
Dear sir or madam:
The negative items on my credit report are medical billings. At that time I did not have medical insurance and am in negotiations with those companies to pay those fees.
There's your sample; short and to the point; however, you SHOULD be in negotiations to pay off that debt. They DID perform their services and have earned their fees.
This is not to say that you can not offer them a lower amount. Everything is negotiable. Ask them to accept a lower payment, but GET IT IN WRITING !! Ask them to accept 1/2 of what you owe, they would rather take half than nothing at all.
- !!!Lv 71 decade ago
What you stated in your first paragraph is sufficient.
If you think your mortgage lender is too picky about this look for a new lender.
- Anonymous1 decade ago
Are they paid or unpaid? If they're paid, what you just related should be explanation enough. If they're not paid, you're going to have to explain why you haven't paid old debts when you're applying for new debt (mortgage).
- JoannaLv 44 years ago
Yeah it might be correct
- Anonymous3 years ago
Thanks for the answers!