Saxon stole my payment

I have had problems with the mortgage since it was transferred to Saxon in Jan 2010. The mortgage was previously on a repayment plan with American Home Mortgage and supposed to be completed with this plan in Jun 2010. Saxon stated they had no information regarding the repayment plan. Hence, we started paying Saxon $1303 per month instead of the $1100 previously. (the mortgage had been behind with AHMSI) but we were making payment to get the mortgage modified. In July I contacted Saxon, who stated they had no knowledge about the repayment/ modification. I had to begin paying the $1303 per month. The paperwork was sent to us for a loan modification in which we faxed everything in. We faithfully paid on time each month. The modification was only supposed to be for 3 months. I called after the 3 months, and was told the paperwork was coming. Every time I called, this is what I was told. In November, I called and spoke to a representative counselor and indicated we needed to be a few days late, as we had just sustained damage on the property---fencing and roof of our home from a severe storm. He indicated that was okay. Payment was posted for November on 26 November. I called the beginning of December because they were requesting documentation, and said our application was denied because we didn't have the paperwork there. After reviewing the notes, the rep said that all we needed were updated copies of bank statements and pay stubs. Within a couple of days, I had that faxed in to them. The following Monday, I left him a message that the documents had been faxed. On Tuesday, I tried to call him, and the operator would not put me through to him, and stated someone else was working the case. A new rep started working the case, and said it was too late for modification and we were denied because our paperwork was not there, and we had breached the agreement with the November payment (that was accepted by Saxon). She said the only thing that we could do was apply for HAMP (which I already know we are not eligible). The circumstances that prevented the arrearage were catastrophic medical bills, home repairs that were not covered by insurance, in addition to some legal fees. Since then, we are financially stable, and have been paying down the medical bills. I would like to see what the corporate office would state about reinstating the mortgage with the modification that was sent. I would like to have the mortgage modified at all possible; The new rep from Saxon, said that was not an option anymore. The only other thing we would be interested in is repayment. I could make arrangements to put together $2600 (in 3 weeks) or $2000 (in one week) as a good faith gesture and request repayment of the arrearage over as long as possible (24 months)?? The amount of the arrearage would be approximately $12700. I don't want to have to explain all of this over again, so I am hoping somebody will have read these notes, please. I have received a NOD and that payment is due 1/5/11. We have received the "Notice of Acceleration". I'd like to begin getting this issue resolved as quickly as possibly, and don't want to be spending a bundle of money for representation, that will not be successful in achieving what we are looking for.