Right thanks for the replys.
I did not return to USA ironically. My dad was very ill and I was told to return by my lawyer to apply for the Spouse Visa. It's funny how anytime someone says they lost they're passport people automatically think its a front just to get into another country again. Not everyone is the same. Some people do lose they're passports. Happens alot. Doesnt have anything to do with me trying to get into UK that way. I lost my dad and things got lost everywhere when cleaning up the house and donating his things that were pointless to keep. My intention was to apply for this visa before going back, but it just didn't work out like that and I never had my passport scanned. I was aware it would be scanned and I could have been refused entry then, but the immigration officer never looked into it. Surely, that can't be my fault. It would be hers.
People can assume what they want when said that a passports lost, but sometimes maybe it seriously did get lost like in my case. My overstay story is nothing but the truth and thats what I will be doing in my Apology Letter. I dont think this is as much of a problem as some are making it out to be. Home office clearly states the rules regarding overstayers applying for Spousal Visas. I think some are looking into it too much. Sorry
Also, my refusal notice says nothing regarding deception. Nor would I ever use that or intend on. I know exactly how nasty the end result could be. My husband is in UK, I would just like to settle with him and start a proper life with him. I wouldn't think of doing anything like that to build even bigger barriers between us. That would be silly.
Thanks very much for all the help. I will remember it when applying for this visa next week.