A reader emailed us the letter he was planning to send to his lender in an effort to renegotiate the terms of his loan. We thought it would be interesting to get readers’ input, both in terms of changes/improvements to the letter as well as predictions about the likelihood of his success.

Dear Madam or Sir:

I am writing to be considered for a loan modification. I am currently in year three of a 5yr fixed mortgage at a rate of 5.75%. As I weigh my options, I am asking that MORTGAGECO extend me a lower, fixed rate for a term of 30 or 20 years. I have every intention of exploring my mortgage options with other lenders but first I wanted to contact you. I would be happy to remain a customer of MORTGAGECO under the proper terms.

In no way should this be considered a plea…

…from a homeowner in financial distress (I will detail my current status below). I simply would like to offer you the opportunity to retain my business, and at the same time take a loan of yours out of the adjustable-rate category and move it to the fixed-rate (which I’m sure is in your interest as well given the current storied “mortgage crisis”).

The three-family home at which my wife and I reside was purchased in December of 2004 for $625,000. Having kept an eye on the area real estate market, and considering the amount of renovations we have done, I would estimate the current minimum price at $750,000. The rental income from the other two units is $2,550 per month (30,600/yr). My credit score is approximately 830. My income is over $70,000 per year. The second mortgage is approximately $50,000. I carry no other debt.

(Although she is not part of this contract since we were not married at the time, I wanted to mention that my wife’s salary is $45,000 per year and her credit score is also north of 800.)

I would sincerely hope that MORTGAGECO and INVESTMENTBANK look at my request as an opportunity to re-negotiate the terms to benefit both parties and not an opportunity to “make a buck” with fees. I thank you for your time and consideration on this.

Sincerely,

BORROWER

Thoughts or suggestions?