Special Servicers

Special servicers are professionals or firms that manage troubled or defaulted loans, especially in the real estate or mortgage industries. When borrowers can't make payments, these servicers step in to assess the situation, work with the borrower to find solutions, and oversee actions like loan modifications, short sales, or foreclosure if necessary. Their goal is to protect the interests of investors or lenders by maximizing recovery while managing risk and minimizing loss on distressed assets. They operate independently from the original lender or servicer, focusing specifically on workouts and resolution of problematic loans.