FLR(M) Invalid and now overstaying 28 day grace period, HELP

[skanoodles]

Hello,

Earlier this year I had a baby via emergency c-section and a week after having my baby I was in the hospital for a month. During that time I should have submitted my FLR(M) renewal but I was deathly ill. After coming out of the hospital and adjusting to life as a new mom, I discovered about a week before my visa was about to expire and submitted it the second week of May. I did everything except hand over money for the new health surcharge. I have been waiting until 27 July to receive information back and was told my application is invalid and they have kept my passports.
Will I be able to re-apply for a visa or will it be a waste of money as I am over the 28 day grace period or should I consider going back to the states and reapplying there? I really don't want to go back as I have been away from my baby for so long already or would the Home Office take mercy on my and a young (and still breastfeeding!) British subject?
Thank you for any help and suggestions.

J.