Midland Funding LLC is a junk debt buyer so they need proof of the debt. Do they have proof of the debt? What is the statue of limitations (last time you paid or promised to pay)? Have they made any other attempts to contact you?
Once you have proof of payoff, they must release the lien and judgment. That would be an immensely stupid move for any lawyer/law firm to refuse to acknowledge satisfaction of judgment - inviting lawsuit.
Once you pay everything off, send a letter for a release and satisfaction - if they don't offer it to begin with.
If you are on the deed, is it safe to assume that you were part of the MPDU qualification process? Or did you add it on after you settled on the MPDU?
If you were on from the beginning, you are a qualified party. Your attorney should manage the property through divorce, and you can continue making payments until you refinance the property.
Are you able to afford the current mortgage on your own?
Once they have proper jurisdiction over you (as they do now), you cannot "dodge" the lawsuit by moving... or else one would continuously move to avoid trial. Have they called you or your family/friends in any way? Has there been any harassing or abusive action to collect? When did you make the last payment?
The most important issue you may have is that payday lenders in Maryland rarely comply with the payday filing requirements. They may not have a legitimate claim to begin with.
That said, the Statute of Limitations does expire in three years, but that is a general rule. The 3yr limit can be extended (tolled) if you make any payment or acknowledgement of debt. When was the last time you, or anyone representing you, spoke with the payday lender/collector?
Look carefully at the mortgage documents. When you have A&B on title, and only A is on the mortgage, B is required to sign a Deed of Trust. This is different from signing a Note (which is the actual debt). The Deed of Trust is an agreement by all who sign, that the Lender is allowed to foreclose on the property in the event of a default.
However, I have seen many cases where the Deed of Trust has not been executed properly - which would be your only practical lifeline in a case like this....
This is something that requires sensitive handling by your attorney. The state does have a right to proceed, with you as a victim. Also, they see cases everyday where victims of abuse demand that charges be dropped - only to end up in court again (or worse) in the near future.
You are not required to cooperate with the State (as far as meeting with them and discussing the case with them). While it is a bit cliche, this really is the exact type of situation where only a hired attorney can...
Do you still own the condo? Does it matter to you if this remains as a lien on your property?
As far as collections, there may be statute of limitations issue. Also, please provide more information on how they are contacting you.