Heard back from mortgage company today. They are not going to change credit reports and have now withdrawn their loan offer. They discovered they also could not work with credit reports that show 120 days late on mortgage. 
@Anonymous wrote:Heard back from mortgage company today. They are not going to change credit reports and have now withdrawn their loan offer. They discovered they also could not work with credit reports that show 120 days late on mortgage.
It's because 120 days late is treated like a foreclosure. I'm going through same thing. You have to have three years on-time payments before you can get a mortgage again.
I think the only thing you can do is to keep trying to get them to change that late payment. Even if they would agree to report it as 90 days. I would try appealing to them based on not being clear how the loan mod process worked, and that you thought that was supposed to get you back on track. In the end, you're not asking for them to waive fees or anything like that, you paid the money, you just didn't understand how it would report. Hopefully, you can convince them to change it. If not, I know it's not what you want to hear, but 3 years comes and goes faster than you might think. We're coming up on three years in January and will finally be able to buy a bigger place.
Starting Score: ~500 (12/01/2008)
I totaly love SHane. He is honest and very helpful. i also really like Tom.