Approved for 6mth moratorium. What now? Help...?

To make it simple. We applied for a modification and got put on and agreed to a 6 mth moratorium instead. During this period we were to decrease our debt to income ratio making the income ratio higher than the debt. We have succeeded in doing so and our debt is pretty much gone now since we weren't able to make mortgage payments. However, there's a balloon of $8000.00 due by 04/05 unless other arrangements are made. We have completed a hardship letter, financial worksheet, pay stubs everything required for loan modification has been sent in. Our paperwork to approve the moratorium did state that the balloon was final unless other (arrangements) were made with the bank. In the hardship letter I asked if we could be approved for HAMP which is the original reason we applied for a home modification but at that time there was no way they would approve it because we our debt to income ratio was too high, (then) not now. So the bank says not to send in any mortgage payments because it would prove to the bank that we can make the full payment and the purpose of the moratorium was to pay off debt and to get rid off as much of it as possible then send a hardship letter saying why we couldn't pay the balloon, noticeably because we spent all our cash not used on our necessities on paying off major debts. So people are we going to get screwed? Is this the banks slick way of foreclosing on our home? I'm so scared and confused even though I know the numbers and the reason why.Still I'd just like to hear other people experiences and knowledge on moratoriums, their aftermath and if anyone else out there has been able to pull off their lender putting a balloon unto the end of the note and getting approved for the HAMP modification after the moratorium period ended? Note: I saved money and tried to pay my full mortgage payment a few times during the 6mth period and the bank gave a strong NO and confirmed each time DECREASE your debt INCREASE your income, that is the purpose of the moratorium. I was also told by a rep. that almost everybody who's moratorium period is about to expire can not pay the balloon and try to make arrangements for a modification. Witty, respectful answers please. The details of my situation are drastic to say it best.