Hoping4change;
CW also offered me a "capitalization" adding my missed payments to the back of the loan and bringing me current. Problem was I could not afford a $2,550 mortgage payment with my new job. They offered this "mod" early April and I had to get it back to them by April 30th. So we declined it.
Problem was we were 7 months behind and I really feared they would delay the mod and push the FC.
So...I advocated my situation with them to push the mod and delay the FC.
And you are so right that if we cave in and accept a bad deal we will just be back here in a year or so trying for another mod. Who knows...mods may not even be offered then. I think you made the correct decision.
Please keep posting here so we can follow your progress.
Cobra