We were at two months delinquent but we caught up and made ourselves current by the third month by making a three month payment. Mortgage company reported to the credit bureaus that they were beginning foreclosure preceding (before they received our three month payment). We became current and now we have a foreclosure on our credit reports and no one has been able to refinance us. We have tried to refinance for 3 years unsuccessfully.
Lawsuit / Dispute Attorney
It depends on what your mortgage agreement documents say about foreclosures. Note, if you become current, your company will probably work with you
Stew Crawford, Jr. Esq.
Crawford Law Firm
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I tell my clients that they are in the "foreclosure process" at the first missed payment, no matter what the stage is technically called. The bank was correct in reporting missed mortgage payments but the terminology may not have been correct. You may be able to convince the bank to revise the language of the reporting since you are current. You may also get the bank to agree to a loan modification so that refinancing is no longer the issue. You should not have too much difficulty refinancing after 3 years if your credit history is otherwise healthy, you have a good debt to income ratio, and the property will appraise.
You need to have an attorney review the documents. It may be possible to file a lawsuit to compel removal of the reporting on your credit report, and based on the credit report and documents you should have a local attorney research the matter.