The U.S. Department of Housing and Urban Development (HUD) is preparing to sell $2.3 billion in nonperforming mortgage loans, the agency’s sixth such sale in the past two years.
The loan sale, titled HUD SFLS 2014-2, Part 2, includes 15,232 nonperforming single-family loans with an unpaid principal balance of $2.3 billion, according to DebtX, which is acting as the loan sale adviser. It will be offered in eight pools, ranging from $94.5 million to $804.5 million, and will bid Sept. 30.
“Investor demand for HUD loans remains exceptionally strong, and we expect to see a high level of interest in this portfolio,” said DebtX CEO Kingsley Greenland in a statement. “DebtX is pleased to support HUD in its efforts to systematically manage its exposure to nonperforming residential loans.”
Most recently, HUD sold $4.8 billion in nonperforming loans in June as Part 1 of its SFLS 2014-2.
Since September 2012, DebtX, on behalf of SEBA Professional Services, has offered more than 100,000 nonperforming single-family loans through HUD’s Distressed Asset Stabilization Program.
Written by Emily Study