One can find samples of late payment explanation letters at myFico, CreditInfoCenter, FriscoMortgageGuy and many other finance sites. Also referred to as an LOX or LOE (letter of explanation), late payment letters can be sent to creditors explaining why a payment is late. However, they are also used as part of a mortgage application to explain why accounts on the applicant's credit report show a history of late payments.
Whether someone is explaining a late payment to the creditor they are paying late or to another entity like a mortgage broker, these letters should be as detailed as possible. If relevent, they should contain supporting documentation. For instance, if someone's credit card bills were paid late one month because they were in the hospital, proof of the hospital stay should be included with the letter.
If someone is applying for a mortgage, they have to meet criteria set by the underwriter. If they do not meet certain criteria, they can write a letter explaining the extenuating circumstances. These letters can address issues like why the applicant's income was lower than usual during a certain time period, or they can be used to explain why an applicant fell behind on their bills.