On March 24, 2010, Bank of America announced that it will start looking at principal forgiveness before a reduction in interest rate. This type of modification is geared towards loans acquired from Countrywide. B of A plans on implementing this type of modification for qualifying loans in May. Contact Bank of America to see if your loan qualifies.
Disclaimer: This is not legal advice and I am not your lawyer. The information provided in this forum is for discussion purposes only, and is no substitute for an in-person consultation with an attorney who can analyze all of the facts and determine how your state and local laws may apply to your specific situation.