Deferred Principal Balance offer

[freeme0215]

Hello,

I received a loan modification a couple days ago.

Here are the details:

1) Offering principal deferred balance offer, which is:

I owe 214,000, they are moving this current mortgage down to 150,000. With the deferred balance of 64,000 to be paid to them when I sale, refinance or pay off the mortgage. They set a new maturity date of Sept 2051. The deferred balance is not interest bearing. The interest rate on the 150,000 set at a fixed 5%. Payment on loan is 828 a month, including escrow.

They wish me to respond by Dec 1, 2011, but within the document they have noted that first payment has to be received by Oct 1, 2011. What does this mean? . Can I not pay and in Dec simply say no to the offer? Should I respond now and counter offer? Ask for the mortgage to equal 31% of income, as it is now 41% of income. I am stalling for time before they start foreclosure proceedings.

I am in a modified chapter 13, where as I surrendered the condo...noted on the coverletter is a notation that the BK trustee may need to get involved.

Any opinions of this offer and my subsequent moves to stall are welcome

Thanks to all