<human>: Can you give me a shortened version of the text?

Back in 2012 I moved my family out of a small condo and into a house. Our condo was under water and I tried to short sale. The credit union we had would not work with us until I stopped paying the mortgage and even after they refused all of the offers we had for the short sale. By December of 2012, they charged off my HELOC without notification. I ended up taking a loan and bringing my first current. I still own my house and my condo (rental) but I need to refinance and am afraid that since the delinquency is still there, and underwriting occurs via automation I won't qualify. My understand is that charge offs on helocs are coded as ...9 and foreclosure are ...8 so the computers assume "if 8 then 9". 

I have offered the credit union a settlement on the heloc but they claim $2-$6 thousand on a 48k charge off was insufficient.
<bot>: Do I have to wait 7 years to refinance my properties and what is a reasonable settlement on a 48K charge off 4 years in?