2nd Mortgage w/First Bank Mortage-being sued

[Joel Fraser]

Hi All. Any advice is greatly appreciated on this issue. We live in Michigan (the home foreclosure rate in this state is awful!) and financed our home in Dec. 2006. First Bank Mortgage out of St. Louis, MO financed the real estate with 2 mortgages. (80/20). After some health issues and late payments with both mortgage payments, they wrote off the 2nd mortgage to "bad debt". The first mortgage is now current. After trying to modify the outstanding balance in to one payment, we were told basically that there was nothing they (collections dept of firstbank) could do regarding the 2nd mortgage, it was written off to bad debt. Well, hadn't heard much of anything until Friday evening when the sherriff served both my husband and I with papers. They are suing us alleging that "Defendent has failed or neglected, despite demand, to pay the balance due on the Note which is presently $21,249.39, exclusive of tinerest; the date of the last payment being December 7, 2006." Plantiff (Firstbank mortgage) requests judgment against the Defendant plus costs and attorney fees. #1-This is the first contact regarding anything about this second mortgage.#2-The last payment was not made in Dec. 2006. That's when the loan was actually initiated and financed. Payments WERE 90 days late but they would not accept payment after they informed us of write off. Should we seek legal advice on this situation or is this something we could work out on our own. We aren't stupid people, but we're not lawyers either. Any advice will help. Thank you!