Paying Past Dues during the Mortage Loan Mod Process

We have been told that our account is in for Review and we should be hearing very soon if our application for a Mortgage Loan Modification (HAMP) is successful. In the meantime, we are receiving automated calls from the mortgage company AHMSI saying it is about the loan modification but when I follow the instructions I get through to a customer service representative, who then asks me to pay the past dues, $7K+. He told me that the loan mod is not guaranteed and that our property was up for negotiation for foreclosure and the only thing to stop it is to pay the past dues.

I said I thought that the loan modification application meant that we would not go into foreclosure. He told me that because when we applied our house was not up for foreclosure they cannot stop it. Was I mistaken in my understanding?

I called my 5 children, who are also having financial difficulties and they have 'clubed' together to raise the cash. Should I pay the past dues or will it affect the outcome of our application?

Thanks for all the information on the site.