HUD to offer reverse mortgages on vacant properties for sale

The Department of Housing and Urban Development has published [89 FR 25644] a notice of its intention to competitively offer approximately 1,265 home equity conversion mortgages (HECM, or reverse mortgage loans) secured by vacant properties with an updated loan balance of approximately $346 million. 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.

The Secretary will prioritize up to 50 percent of the offered assets for award to nonprofit organizations or governmental entity bidders with a documented housing mission. The notice also generally describes the bidding process for the sale and certain entities who are ineligible to bid. This is the twelfth sale offering of its type and will be held on May 7, 2024.