[bucket_of_dust]

My husband passed away in October 2009. Our mortgage note was in his name. I made the $1250.00 payments as long as I could. He was primary "bread-winner" so to say. And without his income it became very difficult, and no him passing away was not expected. In July of 2010 it was just not feasible for me anymore with 3 young children to raise also. So they told me to try for modification. Yesterday I received the call that FHA will modify and put the mortgage in my name. They are lowering the payment to $850. a month, lowered the interest rate to 5%, total owed is $165,000. I can handle the 850. They also want $2000.00 with the first months payment for courtesy fees, I read that through the HAMP program, a borrower wasn't normally asked to pay for modification. When I asked about this they told me that it was for the interest that accrued while I wasn't able to make the payments. There is a 2500 escrow overage and I asked if that could be used for the interest that needed to be paid and was told that the escrow account had a shortage of 100, which is not right because I just received the paperwork on the escrow account 2 days ago. The escrow account has always been over due to not being able to give me the overage check because the note was only in my husbands name. So my question is...is Flagstar correct in wanting this 2k? I have been through the wringer as far as this mod is going and just want to make sure that everything is right...I don't need to hear you got yourself into this, so pay it...this was an unexpected turn of events otherwise I would be paying the mortgage.I know that escrow accounts can have certain amounts of overage...ours is $500...property taxes and insurance were paid in August of 2010...escrow paperwork was received 2 days ago...thanks for you're answer.