Mortgage LOX Maker: Foreclosure / Short Sale Letter
Make your own Letter of Explanation (LOX) for foreclosure or short sale. Explain past property loss and current financial stability for new mortgage applications. Generate instant PDFs for your lender with digital signature capture.
Your Information
Letter Preview
I, {{borrowerName}}, confirm that the property at {{propertyAddress}} went through {{transactionType}} on {{transactionDate}} due to {{circumstances}}. This account has been closed, and I have no further obligations related to the property.
Since the event, my circumstances have stabilized, and I have managed my credit responsibly. Supporting documentation is attached.
{{borrowerName}}
{{borrowerEmail}}
{{borrowerPhone}}
Borrower's Signature: {{signature:borrowerSignature}}
Date: {{signatureDate}}
Tips for Success
- Keep explanations brief and factual
- Attach supporting documentation when possible
- Review all information before signing
- Submit within 48 hours of your loan officer's request
Important Reminders
- All information must be truthful and accurate
- False statements may result in loan denial
- Keep copies for your records
- Contact your loan officer with questions
When To Use A Foreclosure And Short Sale Letter
Job Loss Foreclosure
You lost your job and couldn't maintain mortgage payments, leading to foreclosure.
Medical Emergency
Overwhelming medical bills and inability to work caused you to fall behind on payments.
Divorce-Related Loss
Divorce proceedings and financial strain led to inability to maintain the property.
Short Sale Decision
You chose a short sale to avoid foreclosure when the home value dropped below the loan amount.
Business Failure
Your business failed or had significant losses that affected your ability to pay the mortgage.
Common Scenarios Requiring Multiple Letters
Foreclosure + Credit Recovery:
- Use this foreclosure/short sale letter to explain the property loss
- Use our derogatory credit letter to address related credit issues
- Use our source of funds letter to show current financial stability
How to Use This Foreclosure And Short Sale Letter Generator
Gather Your Information
Collect all necessary details and supporting documentation before starting the generator.
Complete the Form
Fill out all required fields in the generator. The preview will update in real-time as you type.
Review and Sign
Review your letter for accuracy, add your digital signature, and download the PDF.
Submit to Your Lender
Send the completed letter to your loan officer along with any supporting documentation.
Supporting Documents Your Lender May Need
| Document | What It Tells Your Lender |
|---|---|
| Foreclosure or short sale documentation | Provides additional verification and context for your situation |
| Hardship letter from original situation | Provides additional verification and context for your situation |
| Current employment verification | Provides additional verification and context for your situation |
| Bank statements showing financial recovery | Provides additional verification and context for your situation |
| Credit report showing improvement | Provides additional verification and context for your situation |
Frequently Asked Questions
When will I need a foreclosure explanation letter?
Your loan officer will request a foreclosure explanation letter if a foreclosure or short sale appears on your credit report.
How long after foreclosure can I apply for a mortgage?
Waiting periods vary: FHA loans require 3 years, VA loans require 2 years, and Conventional loans require 7 years.
Will a foreclosure automatically disqualify me for a mortgage?
No, foreclosure won't automatically disqualify you if you meet the waiting period and demonstrate financial recovery.
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