Chase mortgage and collection agency

[seatownz]

Hi, here's my situation..I hope someone can help me with this.
A while back, I was in financial trouble and defaulted on my mortgage ($420,000 with Indymac) and my HELOC ($55,000 with WaMu, now Chase) and applied for loan modification with both banks.

Indymac did modify my loan and I'm good and current with them now. But Chase closed my account and asked me to pay the total amount owed, which I don't have.($57,000 now with added interests and late fees)

Now I'm getting a letter from a collection agency saying that their client (chase) want to settle with me for less than the amount I owe. But they wanted like 50% ($28,000), and I don't have that kind of money and I offered them like $5,500. Off course they didn't like that. The guy I talked to actually got mad and kind of rude.

I want to know what is the worse thing they can do to me? and is that mean I have nothing to do with Chase anymore because Chase sold the account to the collection agency? and who has the lien on the house now (still Chase)???

I did write them a letter telling them not to call and to contact me by letters only. Please give me all the info and advices you may have. I'm new at this and I'm actually confused and afraid of getting sued.

BTW, I'm in California, and my house is now worth only about $295,000 per Zillow.
Thank you in advance.

[moosie]

The only thing I know about this is that when Chase bought Wamu about 90% of all documents were lost and never re-appeared so Chase is screwed on many of them where they don't even have a signed contract. They have basically nothing on thousands of now delinquent accounts.

I would contact a lawyer for this kind of $$$$ - see if you can get a few free legal consultations. Make sure you really do some homework on the lawyer online because some of them are in bed with the Mortgage lenders and CRAs.