The first thing i would do is get proof of the original loan having all the signatures it is supposed to have. in the last 12 years banks have been lax on the paperwork (Which is illegal) and have not been following the law, when you go to court you have your lawyer make them prove everything was done correctly, if they screwed up it will give you time, if they screwed up bad you will own the house outright and never have to make another payment.