Bank of America load mod situation & draft hardship letter

[Here's Hoping]

WindyCA.. Thanks for your posts, they are very informative and have encouraged me to attempt to negotiate with BofA and through NACA as well. Mailed hardship to BofA and received form letter saying we'll hear back in 45 days about an assigned analyst. Signed up with NACA, though was bumped out of web submission page, so that is incomplete. Nevertheless, faxed the check stubs, etc. If its not too personal, are you upside down on your loan at all? Here's my sitch:
Purchased in 8/07 for $500K
100% financed at 6.875 I/O for 10 years, balance = PITI for 30 years @6.875
Recently reassessed at $248K (including $7K exemption)
Hubby laid off; monthly income reduced by $3,500.
My main concern is that I've heard that unemployment income is not considered. That would be very bad. I'm still employed, but my take home salary encompasses our entire mortgage payment ($3,310). All my DTI calculations include the anticipated unemployment compensation (regulary and supplemental through the Union). I hope that doesn't sink us in the end.

[stuck123]

Received Loan Modification from BAC with 3.875 fixed for 5 years, interest only. It adjusts after 5 years to whatever the rate is at that time and remains interest only for another 5 years. After the 5 years it will continue to adjust every year. They have added the 3 missed payments they told me not to make to the principle. This amount is now $216,354 (my house is valued at $160,000 on Zillow which is $5000 less than the original purchase price). They took out the Neg. Ammortization, big deal it is already negative and will continue to be negative with an interest only payment. This modification doesn't seem any different than the 5 Option Arm I already have. My payment is only $100 less a month than the interest only payment in the loan I have now. I think if I go along with the modification they have sent me, I will be in worse shape as this loan matures. I feel like a renter. I can rent a nicer house with a pool, by the water for $1200.00. My Exec. Negotiator told me the advantage is later I can try and get a new loan. But how is this possible if the principle keeps going up. I feel like I'm being given the same BS I was given when I was told I would be able to refi before my loan would adjust. The loan is a Countrywide loan and I was told the investor was Bank of NY by my negotiator and someone else at BAC said it was with Aurora Funding. So I don't know who to believe or what to do at this point. Also at the end of August I received a Notice of Accelleration. Any help would be appreciated.

[stuck123]

Received an automated message last night from BAC saying to watch for a special delivery from Fedex. I should receive it in a few days. Can't imagine what they are sending me now.