Welcome to Loan Safe and thanks for sharing your story.
Yes, I have heard of servicers saying this and it really makes me mad because this can affect you greatly and dig you deeper into the foreclosure hole. You need to keep making the payment if you can or at the very least document these calls to the t and place the money in a savings or mattress.
It sounds like they gave you a workout plan that was actually doomed for failure based on the unaffordability for you and now, things have taken a turn for the worse in regards to the income and hardships. This is tough and I commend you for fighting, staying strong and trying to save your home.
ASC can be tough but not impossible. It is a matter of tact at times and luck. But above all, its is shear persistence in calling, emailing, faxing and mailing until you get a solution. If you truly can make your loan at the 5% range, then I see know reason why you can't save your home. But if you need to get around 2% then it may be tough, but not impossible.(nearly
)
Start with a plan, write your new
hardship letter, get you income and expense sheet dialed in and start the process ASAP.
Let me get some info for you on ASC.