15 Aug 2025

🏠HUD Announces Vacant Loan Sales

Notice of HUD Vacant Loan Sales (HVLS 2025-3)

Summary

This notice announces HUD's intention to offer approximately 1,945 home equity conversion mortgages (HECM, or reverse mortgage loans) secured by vacant properties with a loan balance of approximately $550 million, 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 sixteenth sale offering of its type and will be held on September 24, 2025.

Agencies

  • Housing and Urban Development Department

Business Impact ?

$$$ - High

The notice details HUD's intent to sell approximately 1,945 home equity conversion mortgages (HECM) backed by vacant properties, a significant opportunity for bidders in the housing market. This sale involves financial transactions that may influence asset management and real estate investment strategies. Eligible bidders must comply with specified requirements, impacting their operational readiness.

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