In the mean time, I applied for modification through Neighborhood Association Corportation of America to Bank of America, and I was declined due to debt to income ratio being too high, with a Phd program, 401K from work, and Pets being listed as unallowable expenses.

So you aren't allowed to be student, save for retirement, or have pets and be a homeowner or get a modification?

So now I have a Principal + Interest, 30 year ARM, denied Mod, and no help in sight, no resolution proposed by Bank of America, and going to NACA save the dream to meet with them tomorrow.