If you quit paying on your mortgage, the Banks / servicers can go after you through the Non-Judicial foreclosure process (NOD/NOS/TD).  It is probably the cheapest route for them if their paperwork is in order.  If the mortgage / deed of trust was “purchase money” (initial purchase of the property), they can only take back the property and eat their loses.  But if it was a refi or HELOC, the judicial foreclosure process allows them to come after the homeowner for a deficiency judgment in an attempt to recoup their losses.

Judicial foreclosures have been traditionally pretty rare.  Non Judicial has been easier and cheaper.  But in the wake of AB 284 mucking up this process,  the judicial process seems to be picking up steam.

Weeding out the Notices of Lis Pendes recorded by the banks/servicers on Quiet Title issues, 12 have been filed so far this month that are specifically for deficiency judgments or mortgage defaults, following 12 in May.  In 10 of these cases, no Notice of Default has ever been filed – the process has strictly been down the judicial route.   Aurora Bank and Aurora Loan Servicing see to be leading the way.  Is this our next wave?

I’ve got no beef with any of the property owners involved, and do not mean to imply anything improper with any of their transactions.  I’m listing the addresses involved only so any of you data diggers that may be interested can track what I think might be an important new wrinkle in the local market.

–  3865 Mira Loma

–  1795 Starcrest

–  2535 Rio Rico (looks like purchase money)

–  3890 Heron’s Landing

–  15045 Tourmaline

–  1018 Dorcey APN 125-181-10

–  129 Catrina (NOD 9/1/2010)

–  4015 White Rock

–  845 Southwood APN 127-131-08

–  2809 Edgewood

–  2362 Wabash (NOD filed)

–  440 Field