Repossession and FICO

I went through a messy divorce few years ago. I fell months behind on the mortgage payments and I was facing repossession by the bank. I finally sold the property with a realtor. The bank and all penalties were paid in full and the mortgage account was closed. I recently checked my credit report and it states "Showing a Repossession" by the bank. The mystery here is that the status last month was showing "Paid and up to date". Last month I had requested some documents from them. The were down right rude and even went as far as to hang up on me because they thought I was giving them orders. I had asked for a minor correction to my file which he had to write a simple email to the bank. I suspect he was responsible for the negative status appearing on my report on a closed mortgage. This negative report was not there before and I suspect it's affecting my Fico score. If I get this removed, will my score increase?