You should really contact an attorney to discuss the specific facts of your case in order to receive an answer to a detailed question like this.
This forum is more appropriate for legal questions to which general answers can be given for educational and guidance purposes.
The "chances now that the AG finalized settlement with BOA that we can negotiate a principle reduction and a fair interest rate" cannot be predicted with any certainty and this is not really a legal question. Neither law school, nor legal practice prepares an attorney to calculate probability and such calculations are best left to statisticians and actuaries.
Also, the determination of what a "fair" interest rate is depends on multiple factors, including but not limited to, the type of loan, the debt to equity ratio, the solvency of the debtor, the creditworthiness of the debtor, the likelihood of collection, the debtor's other assets, and many other factors that cannot be listed here in a comprehensive manner.
This answer is for general purposes only and does not establish an attorney-client relationship. An attorney-client relationship will not be established with me unless and until you have executed a written agreement for me to represent you.