Option One - AHMSI put our home in forclosure Irving Texas

We refinanced over a year ago and our mortgage was sold to option one. We fell behind dec of 07. As of Feb 08 we sent out our dec 07 payment and it was returned. The letter stated that they would not accept the dec payment. that we needed to now send in dec and jan payments or they would start the forclosure process. In March, sure enough we received our foreclosure procedure. We were able to get it put on hold because we wanted to try a loan modification which we were denied for. SO I got on the phone with the HOPE line in Texas that contacted option one for us. Well here we are almost a year later, nov 08 we just received a loan modification from option one. States that in order to stop forclosure we need to come up with oct and nov pmts by nov 14 which is $5000.00 then come up with our new loan mod amount by dec 1 of 2000.00 which is interest only for 5 years. Our adjustable rate has jumped to 8%. In talking to other mortgage companies along the way for some type of informational help, they were shocked to hear that Option one wouldn't even accept payments along the way. We kept asking option one if we could make pamyments because every month that passed it would increase $2500. Now our mortgage is behind $27,500. Which obviously we can't afford that amount. Now with the loan modification they are offering, we will be paying for our house until we're 80+ years old.

Don't know what to do
norton, Massachusetts
U.S.A.