Second lien foreclosure or loan modification?

[Terence Wang]

I started the foreclosure since the borrower stopped payment for 3 months. About 3 weeks after I recorded notice of default, the borrower requested to remove NOD because he's doing refinance and new lender wouldn't lend for a house in foreclosure. I have no clue if this is true or not. So I said we can do a loan mod by adding all accrued interest to principal and a mod fee in order to remove NOD.

The house has plenty of equity so I'm not worried and I won't give any discount. If borrower's lying, I'll have to do foreclosure again in 3 months but I at least collect the loan mod fee. Does this sound like a good strategy? How much would you charge for loan mod?