I just received a notice of servicing transfer, but I'm in the middle of a foreclosure. What is this?
Again, servicing transfers are very common in the loan industry. When you take out a mortgage loan, it's quite likely that sometime down the line, the lender will transfer the servicing of your loan to a new servicer.
The mortgage loan owner might:
The owner of the servicing rights might also hire a vendor—called a "subservicer"—to take on the servicing duties, rather than servicing the loan itself.
Federal law requires that a current servicer and new servicer notify you in writing of any assignment, sale, or transfer of the servicing of the loan. This notice is probably the letter that you received.
If you have questions about how servicing transfers work in a foreclosure—or any questions related to foreclosure—contact a foreclosure lawyer.