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

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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.