Home Foreclosures: 12.4.2 Notices of Change of Loan Ownership and Servicing Rights of Junior Mortgages
Investors buy and sell second mortgages that have remained inactive for extended periods. The failure to inform borrowers of these transfers of ownership contributes to borrowers’ expectations that there is no need to take action regarding an ongoing payment obligation. During long periods while a loan remains dormant, borrowers may try to contact someone for information about the loan’s status, yet find themselves in the dark.