Call and write to your representatives in congress. Your story sounds all too familiar. The promise people a loan modification, take their money, then when it's time to make the modification permanent they say no, because the government, through the FDIC bailout, is paying them to foreclose on citizens. Call and write your Senators and Representatives, The President, anybody and everybody, the Attorney General of your State, and try to get them involved in helping you to straighten this out.
Good Luck, and please, please let me know how this turns out. I really do care, it makes me sick the things that are happening to good people like you in this country. Our government seems to have forgotten taht banks don't vote, people do!