How to write a late payment explanation letter

Dear Sir, I would like to beg to st6ate that I want to put this letter into your kind attention that I have been late on my payment to your company on my mortgage due to some personal problem.

I have purchased health insurance policy through an Affordable Care Act marketplace that covers all pre-existing conditions.

Where Can I Find a Sample Late Payment Explanation Letter?

The lending company wants to be sure that they will not have to deal with untimely payments if this application is accepted, so the writer should explain why they will be able to pay on time from this point forward. You have vowed to never let it happen again.

Additionally, be sure to write the letter yourself; letters written by your loan officer or another party will hold less weight than one written by you.

Letter to Explain Late Payments

Since that period of time, I have made on-time payments on this loan — paying slightly more than what is due and making the payments well before the due date.

The hospital graciously worked out a repayment plan with me, and I have not missed a monthly payment since we reached agreement. I hope you will approve my credit application, and I will be happy to provide any further information.

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Tip 4 - Explain why timely payments will be made in the future. This letter is from you. I am very much ashamed that I have been very late on my scheduled payment but I have no option to avoid this.

In addition, we have implemented an easy-to-access ledger system — both as a hard-copy physical ledger book and an online tracking system. We are still in the process of disputing this account as, again, we do not believe it is accurate.

I explained the situation and immediately paid the delinquent amount, thus bringing my account current. Consumers end up making late payments on their bills for a variety of reasons. There are some consequences of late payments, such as fines and additional interest.

Each time I was told it would be forthcoming. Overall, if you are able to write a really good letter of explanation, you will be able to buy yourself more time, as the lender may not report the late payment, thereby preserving your credit rating.

Sample Letter Explaining Late Payment

Late payments are also observed in case of credit cards and other debt instruments. Please see the attached copy of the policy, which covers 80 percent of all costs. I realize that most would have gone further and ordered a full investigation or prompted a lawsuit, but in the end, after dealing with this situation for over 6 years, we simply wanted it settled.

Even though you qualify for the loan, the lender may ask you to explain any late payments on your report. In monitoring our checking account where the payment originated fromshe realized that the check had not been cleared in a timely manner and immediately made the payment in person.

Things to bear in mind as your craft your letter: Take Ownership To the extent that you were at fault, own up to your mistakes. To Whom It May Concern: Many lenders will go the extra mile to accommodate consumers that can explain past problems and offer assurances that the problems have been remedied.

Write in complete sentences.Overall, if you are able to write a really good letter of explanation, you will be able to buy yourself more time, as the lender may not report the late payment, thereby preserving your credit rating.

Check your letter for spelling, grammar and formatting issues before you submit it, and follow your loan officer’s instructions.

A letter of explanation helps your lender understand you better. Use it as an opportunity to show that you are a responsible borrower who can manage big financial obligations like a mortgage. Use our free Sample Letter Explaining Late Payment to help you get started.

Simply download or pdf file and customize it. Still feeling lazy to write Sample Letter Explaining Late Payment?

Late Payment Explanation Letter

Related Letters: Explanation Letter – Sample Explanation Letter ; Filed Under: Explanation Letter. Leave a Reply Cancel reply.

Dec 28,  · How to write a letter explaining late payments on your credit report when applying for a mortgage: You’ve applied for a mortgage and, in the process, discover there are creditors who are reporting on your credit report that you have made some payments late.

Writing a late payments letter is an important part of explaining to a lender what happened and how these problems will be prevented in the future. Writing this type of letter is not a guarantee that the financing will be approved, but a well-crafted letter will certainly increase a person's chances of getting the funding that he needs.

Explaining a couple late payments could mean the difference between a good interest rate and a fair one. The basic premise of this explanation letter is to address: The situation you were in which caused you to pay late was beyond your control.

How to write a late payment explanation letter
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