Product: Mortgage

A little les than 2 years ago, I was able to get a Shared Appreciation Mortgage modification from Ocwen Loan Servicing ( they had taken over my existing mortgage ). Under that modification our balance was {$390000.00} but they were going to forgive {$110000.00} over a 3 year period ( XXXX each year ) and during that time we would make payments on {$270000.00} @ 2 %. All in all a fabulous deal and since our home now would sell for around {$400000.00} we are depending on it for our retirement in the next 2 years. I am XXXX and my wife is XXXX 

A few months after we got the modification, I was diagnosed with XXXX and right after that, XXXX XXXX and then a XXXX. Fortunately, after XXXX, XXXX, I am now XXXX ( for now ) and still have most of XXXX XXXX. However, during the time I was being treated I got behind two payments on my mortgage and have been two payments behind for a year although I have made a full payment each month on time for the past twelve months. 

Here is the problem. My modification says that if I am past due three months and are still past due on the last day of the third month, I would be in default. I have attached a page from the modification and the part I am referring to is in paragraph XXXX. In the past year, I have made the monthly payment several times on the last day of the third month by XXXX XXXX and there has never been a problem. Last XXXX ( XX/XX/XXXX ) I sent through XXXX XXXX a full payment to Ocwen which they admit they received but they refused to accept it and sent it back. They said I was XXXX days past due and they ca n't accept any payments after XXXX days. Apparently the problem was caused by XXXX days in XX/XX/XXXX and XX/XX/XXXX so that plus XXXX days in XX/XX/XXXX made XXXX days past due. It is interesting though that I made the XX/XX/XXXX payment the last day of the month as well and they accepted it even though that one was also XXXX days past due just like the XX/XX/XXXX one which they rejected.. 

I told them what the Agreement says and that nowhere does it say 90 days. Their answer was that when they say 90 days, they assume the end of any third month would be 90 days. YES ... ... they actually said that! I have talked to several people at Ocwen and they all recite the speech about 90 days.They refused to accept my payment based on what they admit is an internal policy of 90 days and it is contrary to the terms of the modification. Also, by accepting a payment that was XXXX days past due in XX/XX/XXXX and then refusing a payment 92 days past due in XX/XX/XXXX, they have contradicted their own policy. 
Of course they are now threatening foreclosure if I do n't reinstate the modification with {$7500.00} which I do n't have, or they want me to apply for a new modification. I have several problems with that. First, the original modification was based on the appraised value of our home two years ago. It has gone up since then so with a new modification would be based on a current appraisal and we would probably lose the equity we have. Also, while going through all of the medical problems, we got behind on most of our bills ; not for big amounts but spread over XXXX or XXXX creditors. It probably does n't add up to more than $ 5k total but it looks bad on a credit report so we might not get approved for a new modification. 
Our plan was to sell our home this in the next XXXX years and retire with our equity and now we do n't know what to do and all because Ocwen says I was XXXX days late and the document says I was n't.