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The Department of Housing and Urban Development will offer two batches of residential loans with a total balance of almost $3 billion later this month.
March 5
The Department of Housing and Urban Development is auctioning off roughly $5 billion of nonperforming Federal Housing Administration loans in what is believed to be one of the largest-ever sales of distressed residential real estate.
The loans will be marketed through the Debt Exchange, or DebtX, a Boston-based firm that packages and sells loans for financial institutions and government agencies. Kingsley Greenland, the president and chief executive at DebtX, says interested buyers will be able to view files online and then submit bids to DebtX on designated auction dates.
In all, HUD plans to sell 29,000 FHA loans in three separate auctions. Some 24,000 loans will be pooled and sold on Oct. 30 and Nov. 20, DebtX said. The other 5,000 loans, primarily on homes in distressed neighborhoods of Atlanta, Baltimore, Indianapolis, Las Vegas and various cities in California, will be sold through so-called 'Neighborhood Stabilization Outcome' pools. Those loan pools are available to any bidders and buyers of those loans are encouraged to find ways to keep underwater borrowers in their homes.
This would be HUDs fourth auction of distressed FHA loans since August 2012. Combined, the loans sold in the other three actions had unpaid balances of $7.6 billion.
