You need to get a foreclosure defense lawyer, or they are going to take your house. Don't fool around with this. Most lawyers doing foreclosure defense will meet wityh you free of charge and their rates are resonable. Shop around. Get counsel ASAP!
Who ever is the owner of the condo apartment is responsibe for the maintenance fee. If one owner is not paying then maintenace fees for eveyone else goes up. The bills got to get paid.
If the bank becomes an owner then they have to pay. In foreclosure the bank get paid from sale proceeds before the condo assn for maint fees.
No they cannot put you in jail! If you do not respond the creditor will just walk into court and get a judgment against you. The judgment will become a lien against you home. They cannot force you to sell the house to pay the judgment, but when you sell, the judgment must be paid out of the sale proceeds.
As to your firt question. When the property is sold the mortgage debt is generally superior in right to a judgment debt. So first the bank gets the amount due them, then if there is money left you get paid. Since you were served with the foreclosure suit papers you should file something with the court staing that you are asserting a claim for sums due you on your judgment. Attach a copy of the judgment to the Answer you file. A copy of the Answer bust be filoed with the Court Clerk and the...
If the second lender did not agree to waive the deficency, then they can take the money and still sue you. If the short sale agreement is silent about a deficency you can argue that by accepting the $3,000 they waived the right to seek a deficency.