What happens after the temporary loan modification of 6 months

I was approved for loan modification for 6 months. After that the bank said just continue payment until they can get me a permanent plan for my mortgage modification. I continued to pay the modified amount after the 6th month and then received a phone call from the bank that they have a permanent solution offer. The bank offered a modified amount which I can afford (by struggling realy and cutting expenses, but manageable). However, it will be a baloon payment, which after several years whatever difference from the original mortgage will be added at the back of the original loan and will gradually go up the monthly payment in the long run. I told the bank about the government program that a certain amount of the original loan is forgiven because of the reduction in income due to this economic situation. The bank said I cannot be qualified. I was asking them why I did not qualified when in fact I still have not applie for the HAMP. I was asking the bank how do I qualify and they are not responding. Then my next modified mortgage due date for the next month, the bank refused to received the modified amount and was asking instead to pay the original mortgage amount (which I told them I cannot afford). So this is now my current situation, I am in limbo (don't know what to do).