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Letter of explanation

Posted on: 17th May, 2012 12:46 am
Please help. My underwriter wants a letter of explanation on a couple of late car payments from 2 years ago. The car loan was in my name but the car was my sisters… should I say that? Will they think I’m full of it? Anybody have similar experience?
Hi Gerr,

I personally think that you should inform the lender that though the loan was in your name, the car belonged to your sister. It is better to not suppress any information from the lender.

Take care
Posted on: 17th May, 2012 02:23 am
Has your sister been paying the car loan? Can she provide cancelled check? If she can, then you can write that your sisiter is the person who makes the note payments, but did not have enough credit, so you offered to sign the loan, then supply the underwriter with 12 months cancelled checks. If she is not paying the note, and you are paying it, then you need to write a derogatory letter, stating the reason you were not able to make the payment, how you corrected the late payment, and that it should not happen again. Good luck
Posted on: 17th May, 2012 11:01 am
Gerr;

A letter that you co-signed for someone and that person did not make the payment would be sufficient with me but every lender has a slightly different approach.

Best Regards;
Posted on: 17th May, 2012 01:12 pm
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