Chase put me in this trouble

I applied for loan modification months ago. I was under 60 days late on my mortgage payment. I was having financial troubles so I applied for Loan Modification with Chase. I completed my trial payment for 3 months and my trial payment continued for another 6-7 months. I may have missed a couple payments on time after first 3 months but I payed extra some months to make up for late payments. My Loan modification was denied and Chase says they applied my trial payments to cover other costs in my loan and now demands $14,221.00 for being 10 months late. Their reason to deny my modification was that I was not under default risk because I have significant equity in my property and was less than 60 days past due on my mortgage. Also they paid my property taxes of about $8000.00 and issued property insurance for annual $9000.00 and put it under escrow. I did not know they would pay my property taxes under Loan modification process. I requested them to pay back these amounts as I am willing to handle property taxes on my own via monthly payments and issue my own property insurance with another much cheaper provider. So long story short, Chase has put me in a big hole as they now claim I am behind 10 months on my mortgage payments and they did not apply any of the mortgage payments and trial payments I made towards my principal. How can I save my house as I cant pay $14,221.00 to bring my account current! Please help. Should I re-apply for modification?