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Letters of explanation

Posted on: 22nd Sep, 2011 11:37 pm
Hi there…My husband got his bankruptcy discharged, a year and a half back. We have applied for a loan jointly. Everything was fine but now the loan officer said that they needed letters of explanation for the bankruptcy filing and other late payments. What is the lender looking for in the letters of explanation?
hi mellow,

the lender is trying to find out the actual reason for filing bankruptcy. he will also look into the fact whether or not your husband will be able to manage your finances now. he will try to judge whether or not your husband will face a similar situation in the near future again. in a nut shell, the lender will want to make sure that he will be able to recover the mortgage that he has given to your husband. you should remember that the lender would like to hear that the bankruptcy was caused due to unforeseeable misfortunes that were beyond your control.

take care
Posted on: 23rd Sep, 2011 01:34 am
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