Removing the part about the principle reduction would have to be up to you....what we have seen from the modifications offered on the pay option arms, they have been pretty good........as far as the streamlined modification guidelines..........that is only FannieMae/FreddieMac backed conventional loans so that wouldn't apply to your loan.........the loan limit on these loans is 417k.
Did you have a chance to contact
CW to check on the program that began on Dec. 1st to see if your loan qualifies for that modification?
1-800-669-6607
would be the contact for that program.......