Secured loans and credit reporting

I can't really get into the legal ramifications of them suing you, as I'm not well versed in all real estate/mortgage laws. My company only does small, maybe $5-20K, mortgages and we're usually 3rd or 4th in line. The reality of us buying out the first mortgage in order to foreclose is never, our company will never foreclose on one of our customer's homes. We just take the property as collateral in case they go bankrupt, so that we'll be listed as a secured creditor and paid before the unsecureds.

The MOP (Manner of Payment) #'s go by # of months past due. MOP 1 = 30 Days, MOP 6 = 180 days past-due. So if you can get a short sale before they actually foreclose, then you have it right: 13 MOP 6, Comment BO.

The Status #'s (11 thru 97) have the biggest effect on your credit score. So a 13 is definitely better than a 94. The MOP will affect your score too, but a 13 MOP 6 is still better than a foreclosure. Comments do not factor into your score at all. So the "foreclosure initiated" comment will have no bearing on your score, albeit a physical person that's reading your credit report will still see that comment.