Complaint Review: Wells Fargo Home Mortgage

I am a single, working, bachelors educated, mother of three boys. In May 2011 I was diagnosed with Stage 3 cancer. I underwent chemotherapy, radiation, and multiple surgeries from May 2011-October 2011. During this time I was in constant contact with my bill collectors including Wells Fargo Home Mortgage. I was able to pay my mortgage through September. By October, my funds had depleted and I was not working full time. Wells Fargo had a solution for me. This was a program for ill clients which allowed the client to pay a reduced mortgage payment for three months. Then my situation would be reevaluated at the end of the 90 period. As long as I was prompt in making the reduced payments, I would have nothing to worry about. My father, who was taking care of me during that time, who was a banker for 40 years and well versed in home loans, spoke with the representative from Wells Fargo who assured him this was the best program. My father also asked what happened to the portion of the mortgage not paid during the 90 day period. The rep told my father it would be tacked on to the back of the loan. So, I complied with the agreement. I made my three modified payments, at the end of the 90 days, Wells Fargo calls me to tell me that my loan is in forbearance, is now four months delinquent, and I have 30 days to pay the balance ($4, 500) or my home will go into foreclosure. They also informed me that during this time they reported me to the credit bureau as delinquent for 4 consecutive months. Until I became ill and during the first five months of my illness, I was NEVER late on my mortgage! My credit was great! Now my credit is destroyed and my children and I are in jeopardy of losing our home! I am just now getting back on my feet after defeating cancer. I am now back to work full time and fully capable of making my mortgage payments! I was told that after this 90 day period I could go back to making my regular payment. Now, Wells Fargo has told me they will short sale my home because there is no way they will refinance me because their loan department would have to be "retarded" to loan someone in my situation money. I have this 20 minute conversation recorded. They also told me that they do not give full disclosure to clients in my situation, because the client would be less likely to sign the agreement. This is also recorded. Has anyone been through this same or similar situation? What can I do?