Need advice with HomEq mod contract

[Joel Fraser]

OK. The good news is that HomEq sent us a Modification agreement for our first mortgage. Here are the numbers: OLD (these are our "new rate increase" numbers, the reason why we asked for a mod)- PI- 2920TI (Escrow)- 300total PITI- $3220.00 NEW- mod numbers-PI- 2013TI- 300Total PITI- $2314.00 The original loan mess we signed put us into a 5 year Interest Only loan (years 2006-2011). The loan mod HomEq is offering is : Effective 11/1/2008 borrower's monthly payment will be $2013 (PI only). The date on which the New Monthly Payment change is next scheduled to occur is hereby changed to 11/1/2013. Effective on 10/1/2008, the borrower's rate of interest will be 6.250%. The date on which the interest rate change is next scheduled to occur is hereby changed to 10/1/2013. Here's the kicker:Interest only period. The period in which the Borrower's monthly principal and interest payment will consist of interest only is extended until 10/1/2013 (the "Interest ONly Period"). Upon expiration of the Interest Only Period, Borrower's monthly principal and interest payment will be increased to an amount required to fully amortize the then remaining unpaid principal balance of the loan in equal monthly installments through the maturity date of the loan (10/1/2036). So it's great they will lower my payment for 5 years. BUT, the last 2 years I have paid interest only mean NOTHING. I will still have a loan with the remaining term of 336 months but now instead of having to pay back what I originally owed in 299 months- I will have even less time to pay off that same amount. What are my options here? I don't want to seem ungrateful. We are reall happy to get this mod. BUT, is there anyway to ask for them to keep to our original agreement of the 5 year interest only? Heck, I was hoping they would forgive the stupid interest only period and start letting us have something come off our principal. Any ideas? Or should we just sign this stupid paper and hope that we aren't going into a massive recession and in 5 years we'll still be SOL when interest rates will be higher than anything and we still won't have a way to refinance. Can we do a counter offer on a loan mod? Or would they just laugh at us? Thanks for the help, you guys are great. candy