May 11, BadCredit. Folks can experience financial problems at any time — problems that muck up their credit reports and hamper their access to new credit. However, a well-written letter of explanation attached to a credit application can make a big difference. Many lenders will go the extra mile to accommodate consumers that can explain past problems and offer assurances that the problems have been remedied.
However, whilst this will inevitably be poorly reflected upon your credit history at the time, at some stage when you have been discharged from bankruptcy, you may wish to re-apply for a mortgage or some other form of loan or credit and, these days, there are many companies who are willing to lend money to those who have had a bankruptcy order placed upon them in the past.
The good news is that a well constructed letter explaining the reasons for the bankruptcy is always liable to go in your favour. How to Write it When financial lenders access your credit report in order to ascertain your suitability as a borrower, they are simply only able to access the bare facts.
Here is an example of the type of letter you could use to explain the reasons for your bankruptcy. Dear Sir or Madam, In response to your letter regarding the reasons for my bankruptcy from which I was discharged 18 months ago, this is in regard to my recent application for a loan with your company.
All of the workforce, including myself, were given no notice that this event was about to happen and as a result of finding myself suddenly out of work and aged 42, I found it difficult to find any alternative employment which was able to offer the same high level of income I had, up until that point, been accustomed to.
With a mortgage, personal loan and other financial commitments to fulfil, I was thrust into a situation whereby I was unable to meet my considerable financial obligations which escalated over the subsequent months until the point where one of my creditors issued bankruptcy proceedings against me.
Since being discharged from bankruptcy, I have obtained another senior position within the financial sector, earning a good income with a company whose reputation is solid and whose prospects appear to be one of the most stable in the financial sector.
Therefore, due to the mitigating circumstances surrounding my bankruptcy and the fact that I had no control over that alongside the fact that, up until that point, I had held down a well-paid, steady job for 10 years with the same company and have now obtained another secure position, I hope that this will explain the reasons for my bankruptcy and that you will be prepared to look favourably upon my application for a loan.
I have also included supporting documents of evidence to back up the explanation contained within this letter and if you require any further clarification or information, please do not hesitate to get in touch.The letter of explanation (or LOE for short) is a common part of the mortgage underwriting and documentation process.
Some borrowers panic when an underwriter asks for such a letter, because they think the loan is going to be denied. A writer is a person who uses written words in various styles and techniques to communicate their ideas. Writers produce various forms of literary art and creative writing such as novels, short stories, poetry, plays, screenplays, and essays as well as various reports and news articles that may be of interest to the public.
Writers' texts are published across a range of media. Still can't find the right words for your request letter? You will with our letter-writing tutorials! Learn step by step; Use choice phrases and sentences.
Sample Letter Explaining Late Payment Writing Tips: State the situation you are in and that leads you to the problem clearly. You must assure that it will never happen again and .
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How to Write a Complaint Letter to a Company. Writing a letter of complaint is something most people have to do at some point in their lives.
This wikiHow will show you how to write a complaint letter to a company. === Writing Your.