Quote Quoting Misterboy
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I will look into the HELOC loan contract.

Originally the first and second mortgage were through one company. Immediately after escrow closed the first mortgage was bought by Aurora Loan Services (which I understand is a branch of Lehman Bros.) This first mortgage is actually owned by Freddie Mac, I have just discovered.

The second mortgage was bought by Wells Fargo, and it takes the form of a HELOC. I have found a letter from Wells Fargo stating that their purchase of the loan does not change the original terms of the loan. I have yet to find whether those original terms deemed the loan recourse or non-recourse.

However, whether it is a recourse loan or not, I understand it is at least possible, if not likely, that it is covered under Califorina Law as a "Purchase Loan" and is therefore not subject to any sort of deficiency efforts. That is my primary question.
If you signed a "power of sale clause" then the loan can only be foreclosed as non judicial.

As aaron stated you need to read your original loan docs. If the second was recorded with your original deed you may be ok. However, some seconds I have seen are written as a personal loan in addition to the mortgage.

Aurora closed up shop to originations approx 18 months ago.

To find out exactly who owns the loans (not just the servicer) AND what types of loans they are you will need to pull your credit report from;

http://www.equifax.com/home/

This is the only bureau that will show you who actually owns the loan and NOT just who the servicer is