Hey Shannon. Sorry this post escaped me and I missed it. I am so glad that this site has given you hope and guidance. Thanks for sharing that with us. It makes us keep working late in the night, helping everyone we can.
The most common thing I have seen come form Countrywide are a rate freeze at your introductory rate for 5 years. Some at 30 year fixed. So most likely they will keep at at the 7.2 and 9.875%.
It will all be based on if you can afford it and they will see exactly what you can afford when they underwrite and look at your financial picture. They want to make sure you are not trying to game them or the system and I am sure that you are not.
As far as having the non-recourse 2nd, in California yes and it would give you some grease
