Hi MRSTEEPER,
Welcome to the forum and thank you for joining...........
I am glad that you found the advice useful on this site and it sounds like you are on your your way to a succesful outcome........
In answer to your questions.......
yes they do figure food and gas into the equation, but just keep your numbers around the $100-$250 range and you should be fine.......
They will ask for updated financials if they don't have one current full month worth.
The rate reduction is part of the modification process........the rest is to capitalize the two payments into the principle balance......
the approval for the payments being added is the last step........so you should get the approval soon......
Hope this helps..........
If you have any other questions let us know.........