If you write a creditor to your late payments (mortgage, car or credit card), the letter should explain the state:
- why you are late, (see paragraph 1 of the letter below)
- how serious you are about fulfilling your commitment to them (paragraph 2 of the letter below) and
- when you expect to be able to resume a comprehensive and periodic payments (paragraph 3 of the letter below),
- what you want from them (paragraph 4 of the letter below)
- financial details of your hardship (section 5 of the letter below)
Below is a sample late payment explanation letter. Change it to describe in your own circumstances, but make sure you have copies of financial documents such as adding: checking account statements, tax returns (past two years), all accounts of creditors, all late notices, pink slip, something else will be your turn. hardship
Cindy R. Williams
9 Turn Bill Ct
Anywhere, USA 55555
. To: ABC Mortgage
Re: late payments; Account # 12345678
daytime telephone number: (555) 555-5555
I am writing to inform you of my recent financial problems. I was fired from my job at XYZ Company just before Christmas of 2008. I am desperately looking for another job, but as you know, jobs are scarce in today’s economy. I have found nothing. The absence of work has caused me to leave my bills.
I believe in hard work and have never been out of work for more than a few months. Until this unfortunate event, I have maintained a solid payment history with you.
My goal is to pay everything I owe. I take my financial obligations very seriously and plan to continue regular and full payments as soon as I find a job.
I expect my situation to be temporary and would like to discuss loan forbearance. I would also appreciate any suggestions you might have that would help me get back on track.
Below are the attached spreadsheet of my monthly expenses, as well as copies of financial documents, my pink slip from XYZ Co., and late notices I have received during my financial setback. I send this to show that I really experiencing financial problems. This letter and all documents connected true and accurate to the best of my knowledge.
Thank you for your time. I hope to hear from you soon.
Signature / Date
Forbearance is an agreement to reduce a creditor or delay payments for a certain period. Interest payable during the forbearance, and will increase your loan amount. The good thing is you do not have to pay late fees and penalties. There is no negative impact on your credit not.