Yes a lot of these banks are selling their final judgments for pennies on the dollar. If you were served with the paperwork two weeks ago, it means your 20 days time to file an answer is about to expire. You can hire an attorney to defend the action while attempting to negotiate the debt. You want to avoid the judgment being entered against you because it will stay on your records for 20 years, with the possibility of being renewed for another 20. This means they can at some point attempt to collect the amount either against your wages or any assets you may have. It is imperative you speak to an attorney immediately. Generally a flat monthly fee is charged for cases such as this.
Sometimes, if you're staring down the barrel of a judgment and you don't have the funds to fight it or pay it, the thing to do is talk to a bankruptcy lawyer.
In my practice, I do both litigation work and financial/estate planning. More and more, I'm phasing out of the litigation work and counseling with other lawyers' clients regarding the financial & estate planning aspects of their legal cases. Many times, the need for my services comes from a change in a client's family situation: birth, death, marriage, or divorce. Other times, the client is settling a suit or claim, and they need to know how to reduce taxes and protect the money so it doesn't get squandered or sued away from them. Whatever your legal situation, there is likely to be a financial component that raises questions or concerns for you.
You might want to talk to a bankruptcy attorney to see if filing a Chapter 7 case would work for you. A Chapter 7 would relieve you of any liability on the deficiency.
Many bankruptcy attorneys offer free consultations.
I see from the docket that the plaintiff filed a Motion for Final Judgment. You should challenge their motion as untimely. A plaintiff in a foreclosure action has one year to go back into the same case to seek a deficiency judgment. They could still attempt to get a deficiency judgment, but they would have to file a new civil action. They have 5 years from the foreclosure sale date to file a new action seeking a deficiency. Your foreclosure sale was in 2011. If you can not afford an attorney, then act on your own. They may never file a new action, which requires a new filing fee, and additional costs for service. Most likely, it's a bottom feeder who paid pennies on the dollar for a big huge package of similar claims, so you might also be able to press them for proof of the actual final amount, which they often can not prove.
The law is complicated and although the facts expressed may seem to be all that is relevant, there may be many other important facts to consider. Also, the law is constantly undergoing change, so what may be correct today, may not be accurate tomorrow. Only a full consultation with an attorney experienced or knowledgeable in the specific legal subject matter is likely to result in the optimal course of action.
The potential ways to respond are either via bankruptcy (when applicable and otherwise appropriate) or by defense. We are hearing from many people now being pursued for defiency claims. All of them I am seeing have numerous defenses that we are raising. However, these are generally not obvious other than to people knowledgable about financial services law. Please see an attorney immediately, as the time to defend is very short.
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.