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.
The agency will sell the nonperforming loans in two parts, the loan-advisory firm DebtX said on Tuesday. The first auction will be for approximately 12,500 loans with an unpaid principal balance of $2.23 billion and will take place on March 20. The second auction will take place on March 27 and will be for a pool of 4,000 Neighborhood Stabilization Loans, mostly in distressed areas of California, Florida, Georgia and Ohio, with a total unpaid balance of approximately $639 million.
DebtX will conduct the auction, on behalf of advisory firm SEBA Professional Services.
HUD, which is expected to be one of the largest sellers of bulk distressed debt this year, had previously said it would sell these two loan pools but did not announce the auction dates. The agency offered $1.7 billion in Federal Housing Administration distressed debt in September.