Considering Modification - Need Help....

[Joel Fraser]

When I was refinancing my home in December of 2006, I talked with a local mortgage broker. I am self employed and let him know that I was not self employed for the minimum 2 years. He told me that it didn't matter and that he would tell me exactly what to have my CPA put in the letter in order to make sure it went through. He told me he could not get me the loan without it and a new house we were purchasing was contingent on the refinance of the house. I told him I didn't feel comfortable with it, but he told me as long as I could make the payments it wasn't a big deal.The loan was a Neg Am loan and the numbers on the loan docs are very different than what the lender is telling me. Basically, the Truth in Lending Disclosure states I will have 60 payments of $1,522, 60 payments of $2,357.79 and 240 payments of $2,977.29. However I was told by the lender that the loan will recast in about $17K and the payments will be around $3K. Also, the APR showing on the document is 5.770 but my loan online states I'm paying 7.75%.On top of that the value of my house went from $550K to $290K in just about 13 months. There will be no way to refinance unless the lender lets me do a short-refi which they have said is not an option at this time. I am now looking to do a modification on the house, I haven't brought the CPA letter issue up to the lender because I am more afraid of it affecting me legally.Should I look into loan document forensics, or will this get me in more trouble because I went along with what he told me to do? What are my options?