Eric's Credit Community

I am working hard to improve my credit picture in order to refinance my mortgage.  I recently got behind on mortgage payment due to IRS Wage Garnishments and bank levy. I have resolved the IRS issue, but I now need to catch up mortgage and prevent auto loans from going 30 days late. The mortgage payment plan calls for extra payments to go into a suspense account over the next 12 months to catch up. The problem is that my mortgage will continue to be reported 30 days late for the next year, pretty much eliminating any chance of refinancing when my ARM adjusts in December 2007.  My husband and I have a combined household annual gross income of approx $176,000.   
Monthly combined income after-tax $11,911    
Monthly Expenses   
Housing $4,107    
Transportation (3 car payments and related expense) $2,806    
Other Debt  
Credit Cards (minimum balance) $550 Home Improvement Loan $240 IRS Repayment $200 ******Estimated Prosper Loan******** $465
Other (Household, Groceries, Child Care, Cleaners, Doctor Visits, etc.)  $1,963    

Monthly Expense Total    $10,330    
Monthly Disposable Income  $1,581 Additional savings/investments/emergency reserve $1,191    
Monthly Surplus/(Deficit) $389.73    

I plan to use the loan as follows: Catch up mortgage to current status  $4,760.00, Pay down credit card balances to 30% of limit to improve FICO  $5,000.00. Remaining $2740 goes into emergency/investment account -possibly invest back into Prosper after 6 month recovery period. Working against 11/15 deadline.  Please help! Thanks.