I pulled my credit report this weekend and it shows that this mort. was pur

I pulled my credit report this weekend and it shows that this mort. was purchased in 2004 from the orig. mort. co.. When they purchased it they changed the terms of the mortgage from 15 years to 30 years, same payment amount. Because of this we did not sign the new contract. We contacted a lawyer in 2006, the lawyer sent them a letter stating that they could not by law change the terms of the contract. We never heard from the mort. co. again except for getting the 2006 Mortgage Interest Statement and it shows the "Ending Principal Balance" as $.00.

On my credit report, for this loan it shows the area "Activity Description" as "Paid and Closed". The area where it says "Charge-Off Amount" is blank. In the area at the bottom where it says "Comments" it says "Account paid for less than full balance".

It's my thinking that the request for the paperwork required by the lawyer for the purpose of selling our house has prompted the mort. co to "re-open" the file and they are now attempting to change the status of this loan account to a "Charge-Off " status. Is this another "legal blunder" on their part like they tried to do with the original contract ?
Please advise.
Thank You in advance for any help!