Attorneys unfamiliar with foreclosure practice very often make the mistake of assuming that their adversaries are gentlemen of the bar who are acting honorably. Nothing could be further from the truth. Foreclosure mill attorneys are uniformly dishonest, disreputable sc**bags who routinely engage in subornation of perjury, forgery, fabrication of evidence and other frauds on the court.
The foreclosure mill attorney never had any interest in settling with you or in facilitating a modification or workout. He simply suggested that you contact the servicer as a feint to distract your attorney from either investigating your defense or preparing a more effective defense. This is the usual MO.
The deck is very heavily stacked against you and it may already be too late to interpose ANY effective defense. But IF there is an effective defense which might still be made, you need to explore this with an attorney who is actually well familiar with consumer debt/bankruptcy/foreclosure issues.
Suppose that you had a regular podiatrist who treats your chronic Athlete's Foot as well as a dermatologist who treats your acne. Further suppose that you get hit by a bus and then afterwards suffer a massive heart attack. You call your podiatrist as you lay bleeding in the street and learn that he is golfing and has turned off his mobile phone. You call your dermatologist and learn that he is on vacation.
Would it be better to await the completion of the podiatrist's rounds at the country club, to await the return of your dermatologist from vacation or to call an ambulance and be taken to a hospital emergency room where you could be examined by physicians specializing in emergency medicine, trauma and cardiology?
The fact that your podiatrist is cheaper and that your dermatologist has a great bedside manner and always tells you some great jokes generally ought not factor into your answer!
To this, I will only add that you need to very carefully and honestly assess your prospects of success against the costs of employing a lawyer to continue to fight. This assessment ought to be largely informed by your net equity in the property.
If the fair market value of the property is well in excess of the outstanding balance of the loan, then you ought to be willing to spend more and assume greater risk to try to protect or recover that equity. By contrast, if the property is worth substantially less than the mortgage balance and you are therefore deeply under water on the loan, you need to be asking yourself precisely what you are trying to protect.
In the former situation, bankruptcy is sometimes a means of protecting your interests, though it may now already be too late. In the latter situation, it might very well be in your interest to preserve your liquid cash and simply walk away. Spending your last dollars to fight to keep an under water property, particularly when that fight might be already LOST, may not be a good strategic decision.
Let your actions be guided by your economic best interests rather than by emotions or anger.