How can I settle a Bank of America LOC debt if they won't work with me?

I was employed at BOA 10 yrs ago and was offered an "interest only" Line of Credit for $16,500 on a home with zero equity. After my layoff I fell behind a few times and late charges piled up. I remained current for the past few years, even overpaying my min, but I still owe $16,300 and unable to sell the home because of the LOC. I recently went to a local bank to ask for a settlement agreement if I paid it off. I was told "We cannot do that because of the way the loan was written..." Do I have any legal rights? - unemployed again