I don't think we are on the same page so I had to do some research to answer your questions.
Let me summarize some of the events.
Oct 31, 2006 - Lender reject my option: Deed in Lieu of Foreclosure and sent my case to Loss Mitagation.
Dec 27, 2006 - Receive letter from debt collector saying that they acquired the second loan and is now the current owner.
Feb 5, 2007 - Comparative Market Analysis shows house was sold.
I know the Lender hired an real estate firm to sell the house.
Aug 17, 2007 - Receive letter from debt collector saying the Promissory Note was assigned to them with past due balance of $3698.80 (10 months).
Sept 19, 2007 - Receive letter from debt collector asking for balance ($4068.68) in 30 days or they will accelerate the Note and file suit to collect the outstanding balance.
Oct 24, 2007 - Receive letter from debt collector saying you have been sued. If your attorney don't answer in 20 days a default judgment may be taken against you.
Nov 11, 2007 - I hired an attorney to handle the case. Attorney said he will try to settle for $10,000 but apparently the debt collector didn't agree.
Feb 5, 2008 - Debt collector recovered a Default Judgment against me.
June 17, 2008 - Receive letter from debt collector for
1 - Notice of Intention to take Oral Deposition in Aid of Judgment
2 - Request for Production or Inspection of Documents
3 - Interrogatories in Aid of Judgment
I went and gave him every document he requested for which the documents would explain why I am in a state of financial hardship. Gave him my attorney number to call to discuss.
Aug 28, 2008 - Received Writ of Execution from debt collector
Jan 2, 2010 - Received Writ of Garnishment after Judgment - Civil from debt collector.
Jan 8, 2010 - File answer with district court
Since then I have been trying to read up on how to defend my case since I can't afford a lawyer with my bank account being frozen (not to mention all of those returned checks)
I don't think the debt collector could have bought the house since they sent me a letter dated Dec 27, 2006 saying that they have acquired the second note and the house wasn't sold until Feb 5, 2007. Could I just put that in my motion without having any evidence to prove that the second loan should be wiped out. I'm not sure what all goes in a motion (settlement offer,contest loan amount,financial hardship package. etc...) or could I just file motion to vacate writ of garnishment based on second loan should be wiped out per law no.