Home Foreclosures: 1.2.4 Analyze for Servicing Claims
Generally, the loan servicer initiates the foreclosure. The servicer typically acts as an agent for the loan’s owner. A servicing agreement or pooling and servicing agreement defines the scope of the servicer’s authority to act for the owner of the loan. Servicing agreements may authorize the servicer to conduct the foreclosure in its own name, nominally as the holder of the loan. However, even in this arrangement the servicer is still an agent acting for a principal.