Special Servicing

Who is your special servicer? Is it a collection department inside your loan company? Or did the loan get sold to another servicer? Either way, if you are in default then there are two remedies. If you live in a non-judicial foreclosure state (and have a deed of trust) then the lender will issue a NOD (notice of default) after you have missed 90 days of payments, then 90 days after the NOD, then the lender can issue the Notice of Trustee Sale, the lender must publish this for 21 days, then the auction can take place. you have up to 5 days before the sale, to cure your loan. If you live in a judicial foreclosure state and have a "mortgage" not a trust deed, then the lender has to get a court order to foreclose. This could take 6mos to over a year. The lender has a right to deficiency judgment if the property sells for less than you owe. Also, on judicial foreclosures, you have up to a year to pay the loan in full after foreclosure.

Hi banurekhab,

Check out the given page where you can find a discussion about Special servicer: http://www.mortgagefit.com/annoucements/about51465.html

the special servicer is who undergoes all default management such as loss mitigation. i would like to have an detailed explanation on how a special servicer starts with and what possible solutions he can provide and who are all the parties involved during this process ?

Welcome banurekhab,

As far as I can understand, the loss mitigation department of your lender will be involved in process of special servicing. The special servicer may offer the options of loan modification, forbearance, etc. in order to help the borrower get current on his/her loan payments.