An attorney answer and stated that I can go after them for sanctions, what type.
The case was dismiss without prejudice because the bank lack standing at the time. Judge, advised them the case is dismissed(order of dismissal) due to lack of standing, at the time they file the case with the court, but they can refile another case.
The Court should not grant a motion for default if there's presently no pleading before the court. I'd recommend contacting an attorney well versed in litigating foreclosure cases to discuss this issue. To answer you question as to "why" the motion for default was filed - it was likely due to an error by Plaintiff's counsel.