My wife being a Realtor I here about this stuff all the time. I hear the nightmare stories about the modification loans and all that stuff. Those things are turning into a mess and it sounds like yours might be like that as well with the rate being messed up. I can tell you it's extremely complicated and even the lawyers we know dealing with the stuff say its a mess and the banks keep making mistakes and it even takes them months to get answers from the banks. My advice would be talk to an expert on this one.