morgage company sueing after foreclosure

[moria parks]

What is the name of your state? kentucky
MY HOME WAS FORCLOSED ON 3 YRS AGO THIS JULY. I LIVED IN THE HOUSE FOR OVER 4 YRS & PAID ON IT MONTHLY. I ORIGINALLY BORROWED $111000. THE HOUSE WAS SOLD AT THE PUPLIC AUCTION FOR $113OOO. AFTER 18 MONTHS, I BEGAN LOOKING INTO MY CREDIT REPORT. I FOUND AN UNPAID MORGAGE OF $12000 ON MY CREDIT REPORT. I THEN CALLED THE MORGAGE COMPANY TO INQUIRE ABOUT THIS. THEY HADN'T CONTACTED ME BECAUSE THEY THOUGHT MY HOUSE WAS FILED IN A BANKRUPCTY I DID 1 YR PRIOR. FROM THAT POINT ON THEY WANTED TO COLLECT THE DEBT. THEY KEPT TELLING ME IT WAS FOR ATTORNEY FEES. THE BALANCE WITHIN A FEW MONTHS HAD INCREASED TO $ 28000. I MADE SMALL MONTHLY PAYMENTS ON THIS FOR ABOUT 6 MONTHS. THE LAST PAYMENT I TRIED TO MAKE THEY WOULD NOT ACCEPT SAYING THAT IT NEEDED TO BE SENT TO LOCAL COUNSEL. I TOOK A 401K POLICY THAT I HAD & TRIED TO OFFER THEM THAT, WHICH WAS ONLY ABOUT $4000. THEY WOULD NOT ACCEPT MY OFFER. IN EARLY FEB. OF THIS YEAR, I RECEIVED A SUMMONS SAYING I HAD 20 DAYS TO REPLY. I'VE RETAINED AN ATTORNEY BUT THEY TELL ME MY OPTION IS TO FILE A CHAPTER 13 BANKRUPTCY. I DON'T WANT TO DO THIS BUT AM AFRAID THIS IS MY LAST OPTION. WILL I GET A COURT DATE SO I CAN PLEAD MY CASE TO A JUDGE OR WILL THEY JUST START GARNISHING MY WAGES ? PLEASE GIVE ANY ADVICE.
THANK YOU,

[FlyingRon]

Please do NOT type in all caps. It looks like you are yelling at us.

What you are seeing here is a deficiency suit. The value gained at foreclosrure was not as much as you owed and now the lender is trying to recover it. I assume your lawyer has determined that the deficiency is probably valid. The laws vary from state to state, but often if the purchaser at foreclosure was the lender itself, you might be able to argue that the price wasn't the fair market value and duck at least some of the deficiency.

[jpathfynder]

28k in legal fees for a forclosure.. ouch... My mortgage states "REASONABLE legal fees..."