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My wife and I settled a second mortgage with CitiMortgage early last year. That settlement allowed us to sell our condo about 6 months later, though we still had to bring significant cash to closing. Our hope was to start a family and buy a house this summer. Well, Citi reported the transaction as promised. Our reports say some variation of "Closed/settled for less than full balance". This language looks like a short sale to Fannie/Freddie apparently, and we have been denied a conventional mortgage, even though we made every mortgage payment on time for almost six years and have pretty good credit overall. Our only hope for getting a mortgage is having the item removed from all three reports for both me and my wife. I know that a short sale DQs us from a mortgage (for a couple of years I think), but in my mind this was not a short sale by any reasonable definition. Also, I do not think that the language reported by CitiMortgage is accurate. CitiMortgage is the one who proposed the settlement amount. As far as I am concerned, the full balance of the account was the amount they proposed I pay to close the account. Has anyone else run into this situation? Are there any success stories out there? Has anyone successfully worked with CitiMortgage in removing this or similar language from a credit report? Thanks in advance.