Bank of America to reduce principal amounts, true or false or how does it affect you?

Bank of America announced yesterday that throughout the summer they will send out approximately 200,000 letters, letting their customers know that it will be possible to reduce their principal amount on the "underwater mortgages" by, as much as, $150,000.00.  Is the statement above true?  Yes, in fact, it is.  However, the real question should be, how does it apply to you and here is your answer. Although, the Bank of America it attempting to comply with the recent settlement agreement, which they have reached with the US Government, there are still loopholes.  Not everyone will qualify for this great deal.  If you are lucky enough to receive a letter from Bank of America this summer, and you have to receive a letter to apply, you will then have to contact Bank of America to see if you qualify.  In order to qualify, you must be underwater, which means your mortgage must be more then what your house is currently worth, you must have stopped paying your mortgage payments by January of 2012 and you must show that you cannot afford to make your current mortgage payments. You will also have to show that if the monthly mortgage payment is reduced, you will be able to afford to pay the reduced amount.  Sounds too good to be true????  Maybe it is.