got asked for letter of explanation

I would explain the credit situation as best as you can. You don't have to get to detailed but make sure you list the hot points. I got into this situation, this happened, this is not correct, this is what I tried to do to fix it and this is why it won't happen again. Getting a letter of explanation for many things is very common during the loan process and even though the letter needs to be in your words your loan officer will help make sure you have all the key points that explain your situation. Best wishes, Sean

Hi Peter!As I don't know the specifics of the collection or amount or the loan program.the best bet is to contact your loan officer who can help you concerning yourLetter of Explanation.

hi there:If I may ask how much the collection is etc? I would thoroughly explained the situation (start/cause etc)...The underwriter is requesting this explanation to rep and warrant the file should your loan be sold to the secondary market and your current lender has to protect themselves...usually standard procedure ...Any questions feel free to contact. Lending Nationwide as a bank NMLS 754875...Mike (703) 505 5300

Peter: we would need some more detail. 1. Who is the Original creditor?2. What is the amount?3. What date was the account placed in collections.4. Is it paid or unpaid?When applying for a mortgage the underwriter (the person who goes over your file with a fine comb) looks for discrepancies, as in income, and credit. Stating the collection was placed on your credit due to a misunderstanding isn't an explanation in the eyes of the underwriter. Christina Solorzano;