Fedex packet with loan mod "Pre-Approved" contract. Good offer from BOA?

[AKGarrett]

We have been in a FHA loan mod status since June 2009. Our monthly pmt with escrow included is $836. We received our packet from BOA that gives us their offer. I'm not sure if this is a fair deal to us...please give your thoughts.

1. The Notice Letter is Dated Nov 23, 2010 however Fedex packet shows it wasn't even sent out overnight until Dec 1. My point on this is that they are requiring us to send a cashier's check for $787 that they must receive by Dec 8. Not much of a notice considering we just received the packet. If we were able to get together the amount of funds they are requiring that quickly then we would be able to make our monthly house payment.

2. The amount that we are delinquent, of almost 8k, would be added back onto the principal and basically "restart" the loan.

3. We are being offered a fixed interest rate of 4.875%...our current rate is 6.00%. That would only take our house payment down about $60 a month. That honestly doesn't help us too much, especially in the beginning.

Apparently we do have the option of not accepting their offer. But if we reject it, we are guessing there is the chance of foreclosure. We love our house and don't want to lose it, but this offer doesn't seem to help us.

Thoughts???

[Maurice Bedard]

FHA loans are very limited in the mod they can offer. This seems pretty standard if the new term is 30 yrs. It is a good interest rate for FHA, some get 5-5.5%. Not accepting is risky. Accepting it would at least bring you current if you are close to foreclosure.