Negative Mortgage Reporting

[VirtualCuriosity]

Edited - Completely handeled.

[RobertEG]

I suggest you first go over to the mortgage loan forum on this site.  That is where the heavy-hitters in mortgage-related matters hang their hat.

You appear to have some serious legal and mortgage-loan issues to first address.

[Anonymous]

like it or not, it is reporting correctly.  When you enter a forebearance, it is not an agreement that the loan will be reported as current.    Once the forebearance was started, the loan was no longer in compliance with the original loan agreement and therefore would be reported as such.  I say this as someone who went through a similiar situation so I would love if there was a different answer, but anytime you break from your original agreement then you can be reported in default.    

[GregB]

I realize it is not the result you hoped for but I think you should "be thankful we didn't lose the home and pat ourselves on the back for not walking away like a lot of others are doing". I think you are S.O.L. on the credit problem but far better off doing it the way you did it. I realize you might think it was very bad timing for your wife to get her job back just befor the first agreement period but you might still be waiting for the agreement to be done even now, 13 months later. I know someone who has been at the end of theirs for almost a year, even getting a FedEx package of final paperwork saying that it would be completed withing 30 days - that was now about 100 days ago.

I think your credit was going to be damaged heavily as soon as you couldn't make the payments. This way you still have your house and your credit is probably much better than it would be with a string of lates followed by foreclosure or short sale. 

Congratulations on digging out of the big hole even though it will be a while until it is completely back to normal.

[VirtualCuriosity]

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Edited - Handled completely

[Anonymous]

I would attach a statement in case you ever do anything that requires a manual CR review.

A simple "Mortgage Forbearance Agreement - Paid Arrearages on X/X/2010.  Mortgage is now current.".   Employers do manual pulls so having that note attached would self-explain the 120-days.

[GregB]

A consumer statement is seen in a manual review and could help for something like employment.

However, I seem to recall that it is best you don't have any consumer statement in general. Can you hold off and collect some more info? I don't know the details on this and it has been quite a while. I do recall that when I was tempted to add a statement, several knowledgeable people stopped me.