Redeemed,
Do as Poppy says, and also if you can wait on the modification just to the point of resolving the accounting issues with Chase because Chase will put the payments and fees that they are showing delinquent as of now, on the back of the principle.......
When all is straightened out go for the fixed rate modification......
Also file a complaint, if you haven't already with the OCC.......
Comptroller of the Currency Administrator of National Banks
Customer Assistance Group
1301 McKinney Street, Suite 3450
Houston, Texas 77010-9050
1-800-613-6743
Fax: 1-713-336-4301
Good Luck to you in the court battle.......

Let us know how it all turns out for you...