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Notice of HUD Vacant Loan Sales (HVLS 2027-1)
Plain English Summary
HUD is planning to sell about 4,200 reverse mortgages on vacant homes, totaling around $1.3 billion. This sale aims to reduce financial risks and manage defaulted assets effectively. The properties involved are single-family homes where all borrowers have passed away and there are no surviving spouses. Agents should be aware of this sale and understand the bidding process, as well as who is not allowed to participate.
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This notice announces HUD's intention to offer approximately 4,200 home equity conversion mortgages (HECM, or reverse mortgage loans) secured by vacant properties with a loan balance of approximately $1.3 billion, in a competitive sale. This initiative supports HUD's continued efforts to reduce financial risk to the Mutual Mortgage Insurance Fund and promote the efficient disposition of defaulted assets. The sale will consist of due and payable Secretary- held reverse mortgage loans. The mortgage loans consist of first liens secured by single family, vacant residential properties, where all borrowers are deceased, and no borrower is survived by a non-borrowing spouse. This notice also generally describes the bidding process for the sale and certain entities who are ineligible to bid. This is the seventeenth sale offering of its type and will be held on October 27, 2026.