Need advice for removing a charge off for a HELOC.

[Helochelp]

In 2011 I short sold my house, in California, which included a 2nd HELOC mortgage.  In the final agreement from the 2nd I have a letter stating they were agreeing to a non recourse short sale.  I have begun rebuilding my credit and have found that it is being reported as a charge off.  Correct me if I am wrong, but their agreement to a non recourse sale should have them reporting it as a sale, shouldnt it?  I am going through a credit rebuilding company who is having some difficulty getting this changed. Is there any advice you can give me to assist me with this issue?

Thanks 

[fishbjc]

It should report as:

Settled for "less than full" (short sale)

The second should say:   "paid pursuant to settlement ageement"

Someone else may chime in, but this is what I had in my file from my trying to do a short sale, which never happened b/c we soldl the home ourselves.