Newbie to Loan Mod - Aurora on 1st/Citi on 2nd

[Mike]

My 1st is an interest only at 7% with Aurora that will reset in 2 years and my 2nd is fixed 30 yrs at 9.99% with Citi. I am really confused with the different information I am getting and I hope to get clarifications. I am not sure what the right thing to do. Here are a couple of questions: 1. Is it true that I first need to be in default before I can be considered for a loan mod? I felt I got a run around from Aurora last month. First, they mentioned I can get a loan mod even if I am not in default. So when I pooled my last remaining money and paid them, they do a 360 on me and told me that it's Freddie Mac's requirements that I need to be in default before I can be considered for a loan mod. Now I'm waiting to become past due for this month and then I'll call them to request for a loan modification package? Am I doing the right thing? 2. Citi Mortgage suggested that I don't pay on my due date and make sure to call one day after and request for the loan mod package. I got their loan mod package and I have already submitted all their requirements. I am now past due and concerned about the impact on my credit. If I make a payment, will it disqualify me from their loan mod program? Is this correct? 3. I probably have one more month that I can afford my mortgage payments, after that, I'm dead. My question is - Is it possible not to ding your credit and still get a loan modification?