# 2026-19458: HUD Sells 4,200 Dead Grandma Houses: $1.3 Billion Garage Sale 2026-19458, Notice of HUD Vacant Loan Sales (HVLS 2027-1), is a Federal Register notice from Housing and Urban Development Department published 2026-09-23, effective 2026-10-27; PRIA reads it as touching household money (as of 2026-09-30). - Canonical: https://policyrisk.com/federal-register/2026-19458 - As of: 2026-09-30 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2026-19458 - Title: Notice of HUD Vacant Loan Sales (HVLS 2027-1) - Type: Notice - Agencies: Housing and Urban Development Department - Citation: 91 FR 60387 - Published: 2026-09-23 - Effective: 2026-10-27 - Comments close: not stated - Significant: no - Touches household money: yes - Regulation identifier numbers: none - Last updated: 2026-09-30 ## In one line HUD Sells 4,200 Dead Grandma Houses: $1.3 Billion Garage Sale ## Summary HUD is selling about 4,200 reverse mortgage loans tied to vacant homes, totaling around $1.3 billion. This sale helps reduce financial risks and clears out properties where borrowers have passed away with no surviving spouse. Bidders can get info starting September 17, 2026, and must submit bids by October 27, 2026. ## Abstract This notice announces HUD's intention to offer approximately 4,200 home equity conversion mortgages (HECM, or reverse mortgage loans) secured by vacant properties with a loan balance of approximately $1.3 billion, in a competitive sale. This initiative supports HUD's continued efforts to reduce financial risk to the Mutual Mortgage Insurance Fund and promote the efficient disposition of defaulted assets. 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. This notice also generally describes the bidding process for the sale and certain entities who are ineligible to bid. This is the seventeenth sale offering of its type and will be held on October 27, 2026. ## Effects PRIA read - HUD offering ~4,200 vacant reverse mortgage loans: benefit, medium. HUD is offering approximately 4,200 home equity conversion mortgages (reverse mortgage loans) secured by vacant single-family properties, with a combined loan balance of about $1.3 billion, in a competitive sale to be held October 27, 2026. The loans are due-and-payable Secretary-held HECMs where b… - Sale timeline and due-diligence access: benefit, low. The Bidder's Information Package (BIP) will be available on or about September 17, 2026, bids must be submitted on October 27, 2026 prior to 1:00 p.m. ET, HUD expects to make awards on or about October 30, 2026, and deliveries/servicing transfers will occur no later than 60 days after the Award Dat… - Loans sold without FHA insurance and servicing released: cost, medium. HUD will sell the reverse mortgage loans without FHA insurance and with servicing released, meaning successful bidders acquire the loans without FHA insurance coverage and servicing will be transferred away from HUD. These are Secretary-held, due-and-payable HECMs. - Bid deposit required and applied to sale price: cost, medium. Successful bidders will be required to submit a deposit calculated based on the total dollar value of the bidder's potential award; the deposit must be provided in the timeframe outlined in the bid deposit confirmation and will be applied to the sale price at settlement. - Qualification rules and bidder ineligibility list: cost, low. To be eligible to bid, prospective bidders must submit a Confidentiality Agreement, Qualification Statement (HUD-9611), and an Attestation; HUD removed the prior HUD-9612 addendum requirement for nonprofit and governmental bidders for this sale. Entities are ineligible if, among other things, they… - Possible public disclosure of winning bidders and bids: cost, low. HUD reserves the right to disclose the identity of any successful qualified bidder and its bid price or bid percentage for any pool or loan upon closing of the sale, and HUD will disclose information as required under the Freedom of Information Act (FOIA). ## Related documents - [2026-16228](https://policyrisk.com/federal-register/2026-16228): HUD's Implementation of the Fair Housing Act's Disparate Impact Standard; Amendments to HUD's Title VI Regulations, 2026-08-10 - [2026-13939](https://policyrisk.com/federal-register/2026-13939): Rescission of Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Feder…, 2026-07-10 - [2026-08406](https://policyrisk.com/federal-register/2026-08406): HOME Investment Partnerships Program: Further Program Updates and Streamlining, 2026-04-30 - [2026-08339](https://policyrisk.com/federal-register/2026-08339): HOME Investment Partnerships Program: Further Program Updates and Streamlining, 2026-04-29 - [2026-08244](https://policyrisk.com/federal-register/2026-08244): Equal Access to Housing in HUD Programs Revisions, 2026-04-28 - [2026-06926](https://policyrisk.com/federal-register/2026-06926): HOME Investment Partnerships Program-Maximum Per-Unit Subsidy Limit Methodology and Amount; Notice for Comment, 2026-04-10 ## Sources - [2026-19458 on federalregister.gov](https://www.federalregister.gov/documents/2026/09/23/2026-19458/notice-of-hud-vacant-loan-sales-hvls-2027-1) - [2026-19458 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-09-23/pdf/2026-19458.pdf) ## Related - [Previous: 2026-19457, National Institute of Neurological Disorders and Stroke; Notice of Closed Meeti…](https://policyrisk.com/federal-register/2026-19457) - [Next: 2026-19459, Center for Scientific Review; Amended Notice of Meeting](https://policyrisk.com/federal-register/2026-19459) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2026-19458 (as of 2026-09-30).