HUD Sells Off Dead Borrowers' Reverse Mortgages—Heirs AWOL
Published Date: 8/10/2026
Notice
Summary
HUD is selling about $465 million in reverse mortgage loans tied to homes where the borrowers have passed away and heirs haven't stepped up. The sale, delayed but now set for September 1, 2026, helps HUD manage risk and clear out these loans. Qualified bidders can get info starting August 4 and must submit paperwork to join the fun.
Analyzed Economic Effects
6 provisions identified: 2 benefits, 3 costs, 1 mixed.
1,500 Reverse Mortgages Sold
HUD is selling about 1,500 reverse mortgage loans with a loan balance of approximately $465 million that are secured by occupied single‑family properties where the borrower and any borrowing spouse are deceased and heirs have not come forward. The loans will be sold without FHA insurance and with servicing released. The sale is scheduled with a Bid Date of September 1, 2026 and awards anticipated on or about September 3, 2026.
How to Bid and Key Dates
Prospective bidders can get the Bidder Information Package starting on or about August 4, 2026, and must submit bids between 10:00 a.m. and 1:00 p.m. ET on the Bid Date, currently September 1, 2026. HUD anticipates awards on or about September 3, 2026 and settlement/servicing transfer no later than 60 days after the Award Date. To become eligible you must submit a Confidentiality Agreement, Qualification Statement (HUD‑9611), and an Attestation Addendum acceptable to HUD.
Attestation Against Prohibited Property Acquisitions
Prospective bidders must provide an attestation that no mortgage loan purchased will result in an acquisition of the security property in circumstances prohibited by Title X of the 21st Century ROAD to Housing Act (Pub. L. 119‑101), consistent with Executive Order 14376. This attestation is required to qualify to bid in HNVLS 2026‑1.
Who Is Ineligible to Bid
The notice lists specific ineligibility criteria: entities or individuals that are debarred/suspended or otherwise restricted from government business, those debarred from mortgage business, entities whose Ginnie Mae issuer rights were terminated, parties in violation of prior sale obligations, HUD Office of Housing employees (and many household members), contractors who performed services for HUD on the sale, persons who acquired material non‑public information, and related persons or entities described in the Qualification Statement. Prospective bidders must disclose key employees and related entities in the Qualification Statement.
Less Paperwork for Nonprofits and Governments
Nonprofit and governmental entities will no longer need to submit the HUD‑9612 qualification addendum for this sale. Those entities will only be required to certify eligibility under the Qualification Statement (HUD‑9611) to be eligible to bid in HNVLS 2026‑1.
Bids and Winners May Be Publicly Released
HUD may disclose information about HNVLS 2026‑1, including the identity of any successful bidder and its bid price or bid percentage for any pool or loan, upon closing of the sale of all the mortgage loans. HUD will also disclose information as required by the Freedom of Information Act.
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Key Dates
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