This letter explaining late payments can let the company know what has changed about your situation, how they have improved the way you handle your finances or how your attitude regarding on-time payments has changed.
Sample Letter Explaining Late Payments
February 17, 2019
ABC Mortgage Company
3278 Stanhope Lane
Chillicothe, Ohio 45601
Dear Mr. Smart,
Thank you for considering my mortgage application. I appreciate the time and effort that my adviser, Ken Willis, has devoted to helping me work through this process.
I am writing this letter to explain why late payments were made to (company name) from (beginning date to end date.) Meeting my financial obligations is very important to me, and I regret that this negative situation ever occurred.
In July of 2018, the company that employed me for 10 years was acquired by another corporation. Because of this merger, my position was eliminated with only two weeks notice. Due to the challenging job market, I was not able to secure full-time employment for almost two years, even though I applied for multiple positions every week.
During this time, my family’s finances were strained, and we drained our savings to pay for our daily expenses. We simply did not have enough cash on hand to make our mortgage payments in a timely fashion.
I am thankful to report that I have been working at a new position for over a year now, and my family has regained our financial stability. We have paid off all of our past-due accounts. Now that we’ve seen how quickly income can change, we have also built up a significant emergency fund to protect us in the future.
Thank you again for considering our application. As you examine our finances, I’m sure you will see that we are very capable of making future payments on schedule.