You need a lawyer immediately. You owe them the mortgage, the collection fee, the attorney fees for collection etc. If they get a judgment against you, they can take over title to your old home, and almost any other asset you own up to the amount owed them. You would be better off working out a deal with them through an attorney. I would not purchase a doghouse let alone a home until this issue is resolved. If you do not do this, your credit will wind up in the toilet as well.
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Mr. Sarno is licensed to practice law in NJ and NY. His response here is not legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Sarno strongly advises the questioner to confer with an attorney in their own state to acquire more information.