FHA LOANS - LOE

Author Message
rgonzalez218

Guest







Post Posted: Sat Feb 23, 2008 8:35 pm    Post subject: FHA LOANS - LOE
Like
Dislike

I have never done an FHA letter of explanation for certain credits. does anyone have a sample so that i can go by? i just need to have an idea.
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
Icon Mini Profile banker0679

Community Expert
Community Expert

best lender badge

Joined: 15 Nov 2007

Posts: 452
Location: Charlotte, North Carolina
19.27 Dollars($)
Post Posted: Sat Feb 23, 2008 9:34 pm    Post subject:
Like
Dislike

basically, you're writing a letter to a person.

To Whom It May Concern,

This letter of explanation will help understand my past credit history with these credit accounts (list them here) or credit inquiries (list company name and dates).
I was unable to make payment due to medical reasons/death/other reason. (Write specific reasons and/or dates that may apply)


Please contact me at xxx-xxx-xxxx for any questions regarding this letter.
Sincerely,
xxxxxx

Make sure to have the proof ready.....or send it in to validate your statement. Make everything simple. Do not divulge information that is NOT needed. Also, your loan officer should be helping you with this.

_________________
there's always hope!

"My credit score shot up 68 points!"
Icon Mini Profile ezmortgageloanz

Moderator

best lender badge

Joined: 06 Apr 2007

Posts: 123
Location: National
37.57 Dollars($)
Post Posted: Sun Feb 24, 2008 9:57 pm    Post subject:
Like
Dislike

The LOE is a letter of explanation that you are writing to the underwriting department to compel them to overlook some credit blemishes in your past.

Here is one that I wrote the other day:

General Description of Situation:

The XXXX's have longed to purchase their first home ever since relocating from Texas to Virginia in May of 2000. The XXXX's decided to relocate to Virginia in pursuit of higher pay and employment stabilization---gaps in employment due to contributing factors outside the XXXX's control (downsizing, employer bankruptcy, etc.) were the driving forces behind the XXXX's late payment history. Another factor contributing to the XXXX's past was an attempt to sustain their family’s overhead on one income while Mrs. XXXX attended school (in order to improve her job/income prospects). This letter of explanation hopes to highlight and stress that the problems of the past are just that---in the past and that the XXXX's both deserve and are qualified to purchase their first home.

Positive Aspects of File:

The XXXX's are both gainfully employed in fields in high demand (healthcare/nursing and law enforcement), with employment stability and future income growth potential. In addition, the XXXX's have demonstrated an earnest desire to get “caught up” with their past obligations and have taken upon themselves to arrange payment schedules with two of the creditors with outstanding accounts in collections (payment commitments/schedules are included with this summary).

Description of Issues:
1. Husband has been employed in the same field for four years, but only with his current employer for 4 months.
2. Past collection accounts.

Compensating Factors:
1. Length of time in present profession.
2. Co-borrower is in a profession that allows for future income expansion.
3. Never late on prior rent payments.
4. Good pay history established since 2006.
5. All ratios are within qualifying guidelines.

Thank you for your time in considering our application for the XXXX's.

I personally believe that this is one of those “case-by-case” situations that FHA is so great for! Please help me assist this family of three in obtaining the dream of homeownership.

Hope this helps.

Regards,

Scott Miller

_________________
National FHA Mortgage Broker
www.BadCreditMortgageMakeover.com
jackie lett

Guest







Post Posted: Fri Mar 07, 2008 12:38 pm    Post subject: home to buy
Like
Dislike

I ahev divorced for two years and my husband left me with two kids, since then im attending college full time, working full time and i have three foster children . My ex left me with his debts adn im making my way building my credit up Chase bank finced me a car and i kept up with the payments for 11month never late, I pay my bills on time but his medical bills is huting my score , please help
Icon Mini Profile larry





Joined: 27 Jun 2007

Posts: 3322

474.68 Dollars($)
Post Posted: Fri Mar 07, 2008 2:49 pm    Post subject:
Like
Dislike

Hi jackie,

Welcome to the forum.

I cannot understand why are you paying your ex husband's medical bill and other debts? What you says it you are doing a great job to improve your credit.

Is it written in your divorce decree that you would have to pay his debts?

Best of luck,
Larry
Icon Mini Profile Caron
Caron
Moderator



Joined: 19 Jul 2005

Posts: 1516
Location: florida
279.74 Dollars($)
Post Posted: Mon Mar 10, 2008 12:50 am    Post subject: RE: medical bills hurting score
Like
Dislike

Hi Jackie,

How come your spouse's medical bills are hurting your score? It's good that you have never been late on your car payments but I don't understand why your spouse isn't paying for his bills. You aren't responsible in any way. By the way, didn't your spouse apply for any health insurance policy with which he could have paid off all the bills? Perhaps your spouse has used your information for the medical bills and that's the reason it is affecting your score.

I shall suggest that you go for consolidation of the medical bills if at all your spouse isn't willing to pay them off. But first of all, have a talk with the creditors and check any available document to find out for sure why your credit is getting affected because of the spouse's bills.

I know of one such community which can help you consolidate medical bills - it is the debtconsolidationcare community at "http://www.debtconsolidationcare.com/ .

Good luck

_________________
Mortgage Shopping made easy with booklet
Icon Mini Profile lisascherzer



best lender badge

Joined: 04 Jan 2008

Posts: 755

1.12 Dollars($)
Post Posted: Mon Mar 10, 2008 9:07 pm    Post subject:
Like
Dislike

Hi Jackie,

I would get a copy of all three credit reports from transunion, equifax, and experian and then dispute all of his medical bills. Just state they are not yours. There is no need to explain that you were married, etc. All of them may not come off the report but some of them should. This should help your credit score even more allowing you to purchase a home soon.

P.S. Dont pay a company to do it for you. You can do this for free yourself.

_________________
Lisa Scherzer
Allpointe Mortgage
Expert Mortgage Broker
440-521-7060
Icon Mini Profile freds11





Joined: 17 Mar 2008

Posts: 17

4.91 Dollars($)
Post Posted: Mon Mar 17, 2008 11:48 am    Post subject:
Like
Dislike

How do you do it on your own?
_________________
Looking at refinancing mortgage in the near future.
Icon Mini Profile sara
sara
Moderator



Joined: 05 Jul 2006

Posts: 3236
Location: New Brunswick, New Jersey
581.38 Dollars($)
Post Posted: Mon Mar 17, 2008 10:48 pm    Post subject: RE:
Like
Dislike

Hi Freds,

Welcome to the forums.

Do you want to now how Lisa alone could dispute all medical bills?

_________________
Find me at FB: http://www.facebook.com/people/Sara-Jones/100002976822020
Join me at G+: https://plus.google.com/109953528133398164155/posts?partnerid=gplp0
Icon Mini Profile John1
John1


best lender badge

Joined: 11 Mar 2008

Posts: 20
Location: Texas
8.66 Dollars($)
Post Posted: Tue Mar 18, 2008 2:19 pm    Post subject: regarding the LOE
Like
Dislike

Your loan officer should assit you with the letter. If I have a borrower write the letter themselves, it turns into a boring life long story...and possibly a country song. I have found what works best for me is to interview the client, write the LOE and have the borrower review for accuracy before signing. This way it's clean and to the point. Underwriters don't have time nor will they take the time to read a novel.
_________________
John R. Dunn/Owner
Texas Heritage Mortgage
125 Moore St. Suite 105
San Marcos, TX 78666
512-396-3930
www.txhmc.com
Icon Mini Profile helping_user
helping_user




Joined: 31 Mar 2006

Posts: 806
Location: Hawaii
159.20 Dollars($)
Post Posted: Wed Mar 19, 2008 4:08 am    Post subject:
Like
Dislike

So John, you mean lenders write the letter of explanation for poor credit and then get it rechecked by the would-be borrower?
Guest









Post Posted: Wed Mar 19, 2008 7:40 am    Post subject:
Like
Dislike

They can write it based on what the borower tells them and nothing else. I am not implying that they make up a story or enter anything fradulant. The letter needs to be clear and to the point and I have found borrowers try to explain way too much and turn an LOE into a novel.
Jorge

Guest







Post Posted: Wed Nov 17, 2010 10:13 am    Post subject: LOE Explanation Letter
Like
Dislike

I want to knows if someone has an explanation letter to submitte the U/W why the reazon to invest for a secon property
Icon Mini Profile adonis
adonis




Joined: 22 Oct 2005

Posts: 12179
Location: ALASKA
1313.94 Dollars($)
Post Posted: Thu Nov 18, 2010 7:20 pm    Post subject:
Like
Dislike

Hi Jorge

You can check out the given page in order to find out how you can write an explanation letter for the underwriter:
"http://www.ehow.com/how_5854779_write-letters-explanation-mortgage-un derwriter.html"
Ask question
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message Body
All times are GMT - 7 Hours
Page 1 of 1

 
Delete this topic Move this topic Lock this topic Split this topic 

Page loaded in 0.851 seconds.