Today, Bank of America is offering about 200,000 homeowners a chance to wipe out a big chunk of their mortgage debt. It's part of the settlement several U.S. banks reached with state and federal regulators earlier this year.

And as NPR's Yuki Noguchi reports, it is one of the biggest mortgage forgiveness opportunities so far.

YUKI NOGUCHI, BYLINE: The one-time offers are arriving in the mail this week. Ron Sturzenegger is an executive at Bank of America.

RON STURZENEGGER: They get about $150,000 on average reduction in principal, and when you take their new principal amount times their new interest rate, it's about a 35 percent savings from what they were paying before.

NOGUCHI: Only a small subset of Bank of America's borrowers qualified. Homeowners had to owe more than their home is worth and had to have been at least two months delinquent on payments as of the end of January.

It also only applies to those whose loans were held and serviced by Bank of America, or investors who authorized the bank to change the terms of its loans.

Sturzenegger worries that some of those receiving the offer will ignore it. Many troubled homeowners are already wary of various calls and mailings concerning their loans.

STURZENEGGER: And so they have become defensive and they have not responded. We would like them to know this one is different. I don't want to say this is their best last chance, but I think it's the best chance they've had so far.

NOGUCHI: Those who don't qualify may still sign up for what Bank of America calls dignified alternatives - plans allowing them to lease-back their homes, or modify their loans without loan forgiveness.

Yuki Noguchi, NPR News, Washington.

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