It appears that you have a direct answer from Bank of America, which is the entity servicing your loan.
If they are not going to work with you on a modification,..then you may want to consider putting the property up for a short sale. I am sure that this isn't the answer that you want to hear but I don't sugercoat anything. I always tell it like it is,..even if it stings.
I understand that it is difficult to comprehend selling your home when you don't want to, . but the alternative to that is to sit and wait for foreclosure.
The lesser of the two options would be the Short Sale.
It will be easier for you to get back into home ownership after a short sale then it would be after a foreclosure.
Following a two year period,,.. if you keep up on your other payments,...Auto Loans, Credit Cards...etc,... you can get into an FHA loan with onlyy 3.5% down and purchase a home again.
If you wait 3 years,... you will be qualified as a First Time Buyer and there are several grant programs available that will contribute to down payment and closing costs...
I would be happy to discuss this with you further. I believe in providing as much information as possible so that a Homeowner can be properly informed before they make a major decision.
Feel free to call or email me at anytime...
Hank Lauzon III
Signature Real Estate Group
9525 Hillwood Drive #120
Las Vegas, NV 89134
Web : http://www.HanksLVRealestate.com
Never look down on anybody...unless you're helping them up.