Up the mod process. 5 months later of lost paper work, mis routed calls, disconnetes phones, they say we don't qualify and are demanding back payment or face foreclosure. I want to sue the pant off these bastards

They said to stop paying while the process was being done and apparently you did stop paying. Since you do not qualify then you owe for the stopped months, or have I misunderstood your post.

Yes, they told me not to pay, messed up the paper work, said to re-apply. I asked if I could send them in payments they said no need to send the entire amount plus penelties