You may have been diligent in paying off your mortgage for years but if you have lapsed now, it is your duty to write a letter of explanation to the company that has granted you the mortgage. Your reason could be anything from an accident to an unexpected expense – the mortgage company needs to know why monthly payments are not coming and it is up to you to make sure that they are informed.
When writing a mortgage letter of explanation, provide as much information as possible. Your mortgage number, last payment date and outstanding amount will make it easier for a loan officer to determine where your account stands with the company.
You may be asked to provide additional, supporting documents along with your letter of explanation so make sure you have copies made of cancelled checks or proof of previous payments. If you attach these with your letter, you may save on precious time that may be wasted due to increased correspondence between you and the mortgage financer. Once you have all this sorted out, it is time to write a letter of explanation. You can refer to the sample given below if you are looking for ideas.
January 7, 2015
MR. Liam Neeson
Mortgage Loan Officer
53 Shady Ace Road
Humble, TX 13243
Dear Mr. Neeson:
This is with reference to our conversation over the phone earlier today. As you suggested, I am giving in writing why my last mortgage payment has been late. In October 2014, my wife and I went on a vacation to Bora Bora and were bogged down with some unforeseen expenses due to a mix up in our hotel reservation. Because of this unfortunate event, we had to stay in a hotel that was out of our budget – we shortened our stay as we knew we could not afford the two weeks we had originally intended to stay but that still created a sizeable hole in our account.
If you refer to my mortgage account (RT-716-FG) you will see that all payments from our end have been made on time over the previous two years. As you informed me, a late payment fee of $42 has been added to my mortgage payment which I am willing to pay. I have enclosed three post-dated checks with this letter which will cover payments of December 2014, January 2015 and the late payment fee.
I would like to thank you for listening to me patiently and advising me on how to go about resolving this issue.