I was told not to make the mortgage payment to save it and to hold it not to spend it and use it as a good faith hold.

It's NOT good advice. This is why. The new "Obama Plan" also helps people who are at "risk of imminent default." It means you don't have to be behind to get a modification. Once you stop making payments, your credit score is going to take a hit which is going to make future things like refinances, car purchases, etc difficult for you. So if you are current on payments, stay that way, and if you think that you're going to fall behind, get a loan mod company working for you right away to show them you need help or you're going to start defaulting. Good luck!