Foreclosure after Chapter 7 BR

My BR was discharged in May 2008; at the time, I was not aware the mortgage company (Citimortgage) did not send a Re-Affirmation agreement. I wanted to and still want to keep my home. I continued to make payments to the mortgage company and worked with them on reducing some of the fees due to forced place insurance (when I had my own private insurance). Some of the past due amount was wiped away and servicing fees, etc. remained. I have paid $100+ more on my account for almost 2 years. In Oct. 2010, my payment was returned with the explanation the account was going into foreclosure. It would appear the amount at issue is the servicing fees, etc. that were put on the account during my BR case.

I am currently working with the lender's attorney and have been informed I can pay the total amount due (BTW, I continue to make my monthly payments - even knowing they will be returned). The attorney has requesetd the REI.

It boggles my mind that I am attempting to pay this loan, even though it was discharged in BR, and that my payments are being returned. Any suggestions for working with the lender's attorney in this matter? I want to keep my house.