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
Phone/fax/email

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. Here are the links related to cosigning,
Cosigning Loan
Cosigning a loan – things to consider before cosigning
Cosigning a student loan – a sure way to ask for troubles!
Is cosigning car loan different from cosigning other loans?
Co signing a mortgage
Erasing or disputing cosigned student loan won’t work

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