I haven't heard much of "recasts". i did just look up what it was and your theory makes sense to me.

(Here is the article I looked at: http://www.bankrate.com/finance/mortgages/what-is-mortgage-recasting-and-why-do-it-1.aspx)

There are so many variables, it's tough to say that you are correct but it seems like it could work. I'd try to figure out the numbers. Before you do anything. Well worth the pain and unfortunately it is not done very often. Something like this is usually a very case by case.

I'd also ask your borrower/servicer what options there are. We sometimes offer modifications if someone asks. It all depends on the shop. I'd call and ask to see what options are available.