The Department of Housing and Urban Development is selling reverse mortgages where the original borrowers in the transactions have died.
HUD is marketing mortgage pools that consist of approximately 885 reverse mortgages. The loans are first liens secured by vacant single-family properties.
HUD said that it has verified the death of the borrowers
on the loans by obtaining a death certificate or a notice of death for each deceased borrower.
The offering, HVLS 2017-2, was described
in a public filing Thursday.
“All borrowers are deceased and no borrower is survived by a non-borrowing spouse,” HUD said.
Vacancy was verified through an interior review through a broker price opinion where available. When the access to the interior was not possible, an exterior BPO was done.
The BPOs indicate an aggregate value of around $120 million.
The bid date is June 21, and the winning bid is expected to be awarded around June 26.
In order to be qualified to bid, a confidentiality agreement and qualification statement must be completed, executed and submitted to HUD. Both forms are online at
www.hud.gov/​sfloansales.
