I can understand how you feel. The fees are high, however, I am guessing the contract would support your late charge fees and the otherer fees are most likely foreclosure fees. You can ask for documentation of the fees to identify the reason for the fees.
Late fees the bank can waive late charges and do all the time, usually when people reinstate the loans. If your doing a repayment plan typically the late charges don't get waived. A good question to ask is if you make your payments on the payment plan timely with you be billed for late charges (because you are still late if you are 6 months down).
The $1765 is most likely attorney fees but there could be other expenses too. However, I beleive that most of that charge is attorney fees. These fees are pass through charges. Typically the banks look to recoup the attoney fees up front and amortize the deliquency over a 6 month period.
You are not in a strong position to negotiate fees if you broke a payment plan! On a home equity loan there is not much help because none of them are associated with the stimulious plans and no strong reason why the lender wants to bend. It all depends on you other issues with loans on property and the value of the property.
If this is the only loan deliquent, I would suggest, get on the payment plan and stay current.
Sorry for the bad news, but if you fight this al I see is your fees get higher and you risk loosing your home.
First Weber Group
Certifed Distress Property Expert