An auction to sell residential loans that were originally insured by the Federal Housing Administration is taking place this week.
The aged delinquent portfolio loan sale involves sealed bids on FHA single-family mortgages that will have no FHA insurance.
Included in the offering are unsubsidized non-performing mortgages that are secured by properties located throughout the country.
The offering was disclosed in a Federal Register filing Tuesday by the Department of Housing and Urban Development.
The loans are being sold with servicing released.
Bidder’s information packages were originally made available on April 11.
In order to become a qualified bidder,
prospective buyers must complete, execute and submit a confidentiality agreement and a qualification statement acceptable to HUD.
“HUD will evaluate the bids submitted and determine the successful bid, in terms of the best value to HUD, in its sole and absolute discretion,” the filing states. “If a qualified bidder is successful, the qualified bidder’s deposit will be non-refundable and will be applied toward the purchase price. Deposits will be returned to unsuccessful bidders.”
Bids are being accepted by HUD on Wednesday, and two settlements are expected to occur around June 27 and July 29.
