The feedback above is exactly your best options at this time 4frodo. Your biggest obsticles right now are 2 fold, 1 you have a surplus of 30K sitting in your bank and 2 you keep making payments. Banks DO NOT help anyone with those 2 senarios right now. There are WAY to many people out there in much dier destress. Not to make it sound like i am disregarding your hardships but everything are "future" hardships to the bank. Having a baby that is not here (so you cant document and day care costs) and your re-set on the loan is alittle over a year from now.
I would suggest everything above but perhaps you can take some of that money and since you have good credit right now and think about a bigger place to buy. Take advantage of these low discounted homes (plan for the up-coming baby) then dump all your money on it and RENT the other property. This will help for a bit and once you run out of funds then apply for the Mods. Sounds backwards and crazy but banks will not help anyone that has money (surplus) in there banks right now.