How do you write a letter to explain a couple of late payments?

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My son is applying for a mortgage and 3 years ago he had 2 late payments on his student loan. The bank asked him to write a letter about this. What do you write? Is there a specific way that it needs to be done and is there special language that needs to be used?

  1. Reply
    May 4, 2011 at 2:57 am

    Hi Alison,

    Your son will want to communicate 3 main points in this letter:

    1. Why he was late – hardship, situation out of his control.
    2. What he has done since to prevent this from happening again.
    3. How serious he is about fulfilling his committment to the lender.

    Sample Letter:

    “To Whom it May Concern:

    I am writing this letter to explain my late payments on my mortgage to XYZ mortgage company and to [Lender] in Jan 2000.

    I am very distressed that this has ever happened to me, but I was , , . The circumstances drained my carefully put aside savings and I was forced to miss a payment because of it. My financial advisor told me not to tap into my 401K, and I was able to recover from this crisis and begin making on-time payments.

    I have always prided myself in paying on time, and I have taken steps to put away more money in my savings account to guard against other unforeseen occurences like this.


    Your Signature”

    Hope this helps!


  2. Reply
    May 5, 2011 at 1:38 am

    As promised here is the sample, the late payment letter of explanation, tailored for a specific situation when the loan you cosigned gets delinquent. A cosigner often does not realize that the person he cosigned for, has missed a payment or two, and late payment already hit his credit report. This puts cosigner into very awkward situation, where such a late payment letter of explanation is the only hope to rectify the situation and remove late payments from credit reports. First, he is totally responsible for the timely payments as we explained over and over in the posts that are linked at the bottom, when the person cosigned for, defaults. Second, cosigner has no way of knowing except for pulling his own credit report every month which is not a good idea, if the loan he cosigned for is being paid in timely manner or not, until it is too late. You get a letter from the lender informing about the late payment, or you apply for a loan yourself and oops, your broker tells you that your credit report has issues.

    Late payment explanation letter on cosigned loan

    Date {MM/DD/YYYY}

    Your name
    Your address

    Creditor name
    Creditor address

    Re: {account number}

    Dear Sir or Madam,

    I received your letter notifying me on the 30-day late payment on the above account, dated by {MM/DD/YYYY}. I cosigned for Mr. XXXXX and I am perfectly aware of my responsibility and liability as a cosigner. However, I was not aware about this problem until receiving your letter and I am concerned that my credit report will reflect late payments and my scores will suffer.Alternative version. I have applied for a mortgage and discovered that the account in question has the 60-day late payment which negatively affects my credit scores. I was neither informed by you nor the person I cosigned for, which of course does not excuse my responsibility as cosigner.

    I am willing to bring this account current and proactively monitor Mr. XXXXX making timely payments from now on. Moreover, I will take over the payments if necessary as my cosigner obligations require. In return, I am asking you to remove this 30-day late payment and refrain from referring others shall they occur before we come to the agreement.

    Thank you
    Your signature
    Your printed name

    So much for the late payment letter of explanation. As you can see from this sample, it is actually quite simple to write one in some cases, and if you or a someone you took liability for is guilty, the trick is to find a reason to plead for, and hope for a favourable response from the lender.

  3. Reply
    May 11, 2011 at 6:37 pm

    Hi, I want to send a letter for a 30day late payment on my Bank Of America credit card. Can someone please send me the address where I should be mailing the letter?

    many thanks in advance.

  4. Reply
    May 16, 2011 at 12:18 am

    Can someone please help me out with the Bank Of America address where I can send my goodwill letter?


  5. Reply
    July 2, 2012 at 11:21 pm

    I had some overdrawn on my bank account and I’m getiing ready to go to settlement in 10 days. What sounld I say

  6. Reply
    January 31, 2013 at 11:47 pm

    hi there,

    please assist, how to draft late payment explanations to company which they had remained us more than 5 times, we had made partially payment (75%) and balance will be paid once there is fund from clients.

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