Really need some advice re: loan modification

Yes!!! This is a good loan mod.?? There are several positives to this.?? You were able to work this out directly with your mortgage company.?? Which means you don't have to spend the money to have an attorney do this for you.?? The other good thing is that they're not asking for any money upfront to put toward the past due amount.??
I understand that your trying to be smart and look at the whole picture.?? Given the economy that is really hard to do at this time.?? There are so many things that could change.??
4.875% is a really good rate!?? If you hadn't been late, you could refinance at 4.75% on a 30 year fix.?? I would say the loan mod you've been offered is good.?? You don't have the cost of refinancing.
I hope this helps.?? Please feel free to ask more if you need to.
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Thank you, I do appreciate your feedback.?? I doubt we'd even be able to get a good rate if we tried to refinance because of our late payment history before making the deals with the cc companies, and the fact that housing values in our state have dropped so much.?? This seemed too good to be true which is why I wanted to hear from other people in case I'm overlooking something.?? I'm hoping at the end of 2013 we'll have re-established our credit history and maybe will have the option to refinance.

This is a good start for you.?? Just make sure you get it in writing.?? That's the only thing.
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We have an actual contract spelling all this out and there are instructions for us to sign it in front of a notary and mail it with our first payment of $1500.?? I will just need to make a copy for our files.?? Thank you again!

that sounds like an awesome deal, congrats and please report back after you receive firm confirmation that your loan modification has gone through!

Thank you, I'll let you know how it goes.??

In a nutshell, got layed off, fell behind on mortgage, was notified we were in active foreclosure on Dec. 5, 2008, when called WF they said we QUALIFIED for a loan mod but we had to send in $4200. and that would make our new payment due May 2009, at a $50. more a month than we were previously making, and not to make any payments til then, so we sent the money, got no modification, but got a forebearance payment plan at $376. more a month. They never discussed this with me in any of the many calls to WF. Hence we couldn't afford it didn't pay it and they put us back in active foreclosure. Is what they are doing legal. Once foreclosure starts are they allowed to ask for payments?

Yep, they will get as much money out of you as they can.?? The same thing happened to my mother.
Did you contact an attorney to help you with this or did you go at this yourself?
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Just letting everyone know...

Statistically, 58% of all homeowners who work with their lender will RE-DEFAULT within 6 MONTHS to 1 YEAR. The lender will most often a temporary solution that sounds great, but in the long run, it is beneficial to the lender, not the homeowner. Do not forget who put you in the loan in the first place. The economy is a mess because of ARMs and Interest Only loans. This is called creative financing. Another loan written up under the same guidelines will just give you the same problems down the road.

With a reputable modification company, you may be able to have a lower fixed rate, a principal balance reduction, and lower mortgage payments. Permanently.

This is your home that you're talking about. Unfortunately, unless you are a foreclosure/ real estate lawyer, mortgage professional, or something along those lines, you will not have the know-how to get the best deal possible through your lender.