HELP...how to write a letter explaning derogotory item on credit report?

Can anyone help me? My fiance and I are trying to buy a house. The lenders need a letter explaining a voluntary repossession of a vehicle from five years ago. What is it the lenders are looking for (accountability, explanation..) I'm realy having a hard time gettting started, any advise would be helpful. Thanks!

Update:

We paid it off, we debt free now, but we still have to explain ourselves

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  • 1 decade ago
    Favorite Answer

    Here is a link that has some sample letters that you can use as a template. Revise the information so that it reflects your accounts in question.

    http://www.homebycountrywide.com/files/docs/Disput...

    If they are looking for a letter explaining a voluntary repossession, what they are looking for a a letter explaining what happened financially that you had to voluntarily have it repossed. And what have you and your fiance done to prevent this from happening again in the future? Did you attend a budgeting class? Obtain positions within your company where you are making more per year? Have you elminated some other debts since then?

    You want to be truthful in your letter, and try to convince the lender that this was a once in a lifetime occurance, and it won't happen again in the future.

    Let me know if you have any other questions. And be sure that you aren't purchasing more home then you can afford.

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    4 years ago

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    RE:

    HELP...how to write a letter explaning derogotory item on credit report?

    Can anyone help me? My fiance and I are trying to buy a house. The lenders need a letter explaining a voluntary repossession of a vehicle from five years ago. What is it the lenders are looking for (accountability, explanation..) I'm realy having a hard time gettting started, any advise would...

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  • OC1999
    Lv 7
    1 decade ago

    First do not put any "consumer statements" on your credit report. They are not used in any scoring calculations and can actually backfire by pointing out negatives if they are reviewed by an actual person.

    As for what you need to write in this letter. You do not need a novel, just a brief statement as to what happened, especially if it was 5 years ago. Just be honest with what happened. For Example: You lost your job, cut hours at work, divorce...

    For accountability all you really need to state is the obvious item that you paid it off. This shows your accountability and speaks louder than anything else you could write now.

    It would be unlikely that anything you write, unless it was something like you just felt like turning the car back in, would keep you from getting the loan. You may still get denied but it would be most likely for other reasons if you did.

  • 1 decade ago

    Per the fair crediting act you have the right to add 100 words to any of your derogatory items that is listed on your credit report. If you send the credit bureau that is listing this repo a letter stating why this car was repo. You were laided off, you were sick. The credit bureau then has to add it to the report. This process can happen as fast as 30 days from when you write the letter.

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  • marro
    Lv 4
    3 years ago

    Voluntary Repossession Letter

  • There are alot of websites to pull up type in credit etc. repossession and some will give forms and also write to the credit bureaus and give reason on line there are forms under the credit bureaus and you can fill out and give explanation. One of my credit card holders told me to do that when someone got into my accounts. she said write letters explaining and ask to have it taken off it is five years ago.

    Source(s): From one of my credit card companies they told me what to do about a credit problem
  • Anonymous
    5 years ago

    The absolutely free reverse vin check sites generally provide fake information. To get real information, money will have to be paid. The free searches provide fake information so they can get your email address to send spam.

    Stay away from shady reverse vin check sites, most likely you won't get any information after you make the payment. Not to mention you won't get a report and you won't get an answer if you try to call for a refund. Stick with a reputable reverse vin check site like http://www.reversevincheck.net that has been around since 1995.

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