Short sales may fall through the cracks as banks sell servicing rights

As big lenders sell the rights to service millions of mortgages to specialty companies, some homeowners who were in the process of obtaining loan modifications and short-sale approvals say they’ve been lost in the shuffle. Bank of America announced in January it was selling the servicing rights to 2 million home loans with a balance of $306 billion. All told, servicing rights to nearly $500 billion in mortgages have changed hands in the last few months, and according to one estimate, up to $2 trillion in mortgages may eventually be moved. Source: charlotteobserver.com.