I need assistance with Option One

In 2004 my husband lost his business. He now has a salaried job much less than we were used to earning. We have exhausted our savings trying to keep up with payments. In the mean time, we have had to refinance which included a $25,000 assessment to the state of Delaware for past taxes that we are to receive back when our tax lawyer has it re-assessed. However, that money is now being paid for in our new refi. Another hardship on us has been that we have 'taken in' my 12 year-old niece from my sister to 'save' her from State intervention. We do not receive money from her mother or claim her on taxes. My nieces mental issues are more than we can handle, and at the end of this school year she will not be with us anymore. She may be 'attending' a State facility. We do expect to earn more money with second jobs, receive our full assessment back from the State, and have one less child to care for. The loan we have currently ballooned from 7% to 10% this year. We would love to be able to refi for less than 7%, but if we could at-least get back to the 7% it would help greatly. We have found it very difficult to deal with Option One. In a seminar with a state representative, he said that they are the one company that takes a hard line on assistance.