Select Protfolio Servicing Loan Mod-not so good!

[Mike]

Hello all, I started a loan mod with SPS and so far I am uncertain. After sending all the docs and hardship letter, i finally got a response. Here are the facts: Loan: $364,750 Current payment: $2,425 (ARM adjusting in 2011) Insurance: ~$300/yr Taxes: $3,000/yr Interest rate: 7.95% The lady who emailed me back said she could TRY to do something for me and could include an interest rate reduction to around 5% and would try to lower my payments to $2,295 (principal, interest, taxes and insurance). Which would leave me with the HOA fee of $250. I am not sure if this is a good deal and I am skeptical. I need advice and am not sure I can afford this payment. Naca told them we could only afford $1600 w HOA fee and they won't negotiate. Any suggestions? Please help!