We have been working on a modification of our mortgage with CitiMortgage since February 19, 2009. We have had a drastic reduction of income and the only solution that makes sense for the bank and for us is to modify our mortgage loan.  In June the CitiMortgage representative said we were approved for a modification under the New Affordable Housing Plan under the Obama Administration for 2% rate for 5 years and then a fixed 5.29% rate for remaining 25 years.  She explained we had to make 3 on time payments in a row and must make the first one within 30 days.  I said great send the paperwork out for our attorney to review and we will sign and send it back with our first check.  She said "No, paperwork will take over 90 days" and that if we do not make a payment within 30 days the modification will be denied.  We reluctantly made the first payment.  I called the next month to make the 2nd payment and the rep informed me that our modification is not approved by the investor Hudson City Savings Bank.  They fraudulently made us make a payment and told us our modification was approved and then took it away.  They said we will have to do a regular modification, short sale or deed in lieu of foreclosure.  We are so frustrated at this point.  We still make a decent income and could make this work with the bank, but they are not willing to work with us and help in a timely and efficient manner.  Our home has negative equity and the investor will stand to lose approx $400,000 on our home if we do a short sale.  We are at a point where we do not know what to do to get help.  We are not the type of people to walk away from our home.  We know there is a solution but cannot talk to anyone who can make a decision.