Loan Modification Offer

[MFerguson]

I received an offer from Countrywide/Bof A whith following terms:
New Rate: 4% I/O for 5 years then fix at 5.25%
New payment with escrow: $2,007.75 ( I/O )
Payment to income: 31.49%
New UPB: $469,219.10
Payments capped: 12

Our loan was 436,000, and it looks like they added all the missing payments 39,000 (7 months)
Our second for 75k is not mentioned, so not sure what is going to happen to that
The house is worth 35o,ooo if that. The house also needs some repairs we cannot afford.
Not sure who to talk to about this. He went through HUD and took 6 months to get an offer.
Is it possible to negotiate for a better rate? We also are expecting another child and I do not have paid vacation. My husband does not work due to his back and we have 2 children with special needs.

Any thoughts or advice would be greatly appreciated. Monica (Oregon)

[Evan Bedard]

Hi MFerguson welcome and thank you for joining our community.

As far as your 2nd mortgage that modification will come seperate. But the modification you have recieved is actually a very good modification and Bofa may not offer anything better because now you are at 31% of payment to income which meets their guidelines. It is really up to you if you decide to take this offer or not. It's true that there have been some homeowners who have achieved a 2% interest rate but that is very rare...