Change of Trustee...Good or bad news?

[12BGone]

Short version of a very long story:

In July '06, I refinanced my Indymac loan on home in California shortly before relocating to Seattle. Tried to rent or lease option home, while doing repairs and upkeep, but that didn't work. Considered short sale late last year but three RE agents stopped returning calls, which was very discouraging. The house is in a remote location surrounded by other REOs/short sales.

I stopped making payments in November '08 and got a NOD in April. I had stopped making payments on HELOC also in November but realized it may be better to pay that off than to have it become a charge off.
My question is I just received notice that Indymac changed the trustee in April to a trustee here in Seattle. Should I be worried that they are seeking a judicial foreclosure vs. non-judicial? Is there some statute that says the trustee should be in the same state as the trustor during foreclosure?

I purchased a home here in Seattle and am worried that they may come after it, although it is underwater as well.
Any advice would be appreciated.

Thanks,
Steve

[Moe Bedard]

Hey Steve!

I believe that since this is a legal process and an attorneys is needed, that a law firm licensed in that state will handle the foreclosure. As to their intentions, anything under state law could happen. I just don't see them going after too many borrowers. Unless they are liquid with assets.