Fifth Third bank 5/1 ARM 7.375 down to 4.375 for 24 months only. Good deal?

[Joel Fraser]

I am in CA, this is a FL property/loan investment property duplex/rental.The property is upside down big time, purchase: 265K, loan is 230K (10% down, 90% loan LTV in 2005 with PMI)This is Cape Coral/Ft Myers area which has gone down big time, bank owned duplexes are listed for as low as 90K, 95KLender: Fifth ThirdLoan: 5/1 ARM at 7.375%I dont have a single late payment, but struggling to payI submitted the hardship letter with expenses, income, copies of W2, paystubs, 2 months later the management approves a 3 percent reduction in interest rate for the next 24 months. From 7.375% to 4.375% for the next 2 years, which will be saving me $450 each month, but i know property values will not come back in 2 years, maybe 10 years. What do I do? Is this a good offer. Will an attorney get me a better deal negotiated?I know the property will get reassessed and I will start paying $300 more a month for taxes. I also know I am loosing a tenant and the new one (after some vacancy) will pay a reduced rent, and I will still be negative every month.I was hoping for a rate reduction for a longer term. I was hoping for a principle reduction. Has anyone been successful in doing that? The agreement says:1) The new principle balance will be $XXX,XXX.XX 2) The interest rate will be 4.375% which will be fixed only for 24 months3) The monthly payment of principle and interest during the 24 month period will be $XXX.XX4) Your first monthly payment under this modification will be due 08/01/20085) The 24 month period will begin with the 08/01/2008 payment and will end with the 07/01/2010 payment. Your loan term will rever back to the original terms of the mortgage beginning with the 08/10/2010 payment. If you original mortgage had an adjustable rate, your rate will only be fixed during the modification period and upon reverting to the original terms will once again become an adjustable rate, which will adjust pursuant to the original terms of the mortgage.6) The modified mortgage maturity date will be on 07/01/2038