How to fight a predatory mortgage?

how can you fight back when a predatory lender has taken advantage of you--in 2005, refinance our home and the terms put us in a worse situation than before with high interests, interset only on the first until 2015 and a ballon on the second of $50,000. hud cunselors have said these loans were designed for us to loose our home. alos, it appears to be one loan and at the end becomes two. the notes were signed by my wife only (we were not married at the time). this makes no sense since we have been told this is usually done to get better terms and this is not the case, but in a way it may work to our benefit since my wife has very little income and mine is federal benefits which i do not belive they have any right to since i am a non-borrower. loan modifications were denied twice and now hud wants to try again but the more we think about it it makes no sense to keep the house. the loans total $300,000 and the home is now worth only $149,000. there is no way to refinance when the ballon hits so way prolong things? if my wife defaults, we will be free of the house and all the problems. at what point do you admit you are spending and spending and have nothing to show for it and the future holds no solution. if we continue to pay the mortgages and wait until the first goes up or the ballin hits we loose the home after spending around 24,00 per year on interest only--basicslly paying rent to the banks and having to do all the things that need to be doen to a home. problem we no longer have any money to keep the home up. recent floods have shown that if work is not done in heavy rain the boilers could go etc. and there would be no money to fix them etc. as it is all our money goes to the mortgages. we used our savings and borrowwed from my life insurance to stay cureent before counselors told us these loans were predatory but offered no solution.