1. Once that happens, the special servicer likely will try to negotiate with the partnership to restructure the debt.

2. Last year, a loan servicer filed to foreclose on two office buildings in Fairfield, N.

3. The transfer to the special servicer, CW Capital, could occur as soon as this month, the people said.

4. Modifying a loan required more time and paperwork, so the servicer actually stood to lose money.

5. But in more recent deals, the watchdogs can't decide by themselves to fire a special servicer.

6. If the loan has been sold to an investor, the servicer also must secure its approval.

7. The government could also match, point by point, any interest-rate reduction made by the servicer.