HUD Sells Dead Owners' Mortgages: $730M Haunt for Bidders
Published Date: 1/21/2026
Notice
Summary
HUD is selling about 2,500 reverse mortgage loans on homes where the owners have passed away and no heirs have stepped up. This sale, worth around $730 million, helps HUD manage risk and clear out these loans. Bidders need to sign up by early January, with bids due by February 10, 2026, and winners announced around February 13.
Analyzed Economic Effects
5 provisions identified: 2 benefits, 3 costs, 0 mixed.
HUD Selling ~2,500 Reverse Loans
HUD is offering approximately 2,500 home equity conversion mortgages (reverse mortgage loans) with a loan balance of about $730 million for sale. The Bidder Information Package will be available on or about January 7, 2026, bids will be accepted February 10, 2026 from 10:00 a.m. to 1:00 p.m. ET, and HUD anticipates awards on or about February 13, 2026.
Loans Sold Without FHA Insurance
The reverse mortgage loans in this sale will be sold without FHA insurance and with servicing released. Buyers will receive loans where FHA insurance is not attached and servicing rights are released to the purchaser.
Deposit Requirement for Successful Bidders
If your bid wins, you must submit a deposit calculated based on the total dollar value of your potential award; that deposit must be received in the timeframe in the bid deposit confirmation and will be applied to the sale price at settlement. Awards are contingent on HUD receiving the required deposit.
Reduced Paperwork for Nonprofit and Government Bidders
For HNVLS 2026-1, HUD will remove the additional qualification addendum (HUD-9612); nonprofit and governmental entities need only certify eligibility under the Qualification Statement (HUD-9611).
Detailed Bidder Ineligibility Rules
Prospective bidders are ineligible if they or related entities are debarred/suspended, restricted by federal or state agencies, have lost mortgage business licensing, had Ginnie Mae issuer rights terminated, violated prior sale obligations, are HUD employees or their household members, performed services for HUD in connection with the sale, acquired material non-public information, employ HUD Office of Housing employees improperly, or use ineligible persons to prepare bids.
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