Profit

Nonprofit bidders buy over 800 mortgage tickets at HUD vacant loan sale – RISMedia


The U.S. Department of Housing and Urban Development (HUD) Asset Sales Office recently announced that 23 mission-oriented nonprofits have successfully participated – and 11 received pools – in its competitive bid for the December 1, 2021, the vacant loan held by HUD. Sale (HVLS 2022-1). Collectively, these organizations successfully won bids on 814 mortgage tickets, representing the entire volume of tickets eligible for priority auctions.

In line with the Biden-Harris administration’s September 1, 2021 announcement that more HUD-owned properties should be returned to a future owner, HUD has offered up to 50% of the notes in multiple loan pools for offers first by non-eligible -for-profit organizations and state and local government units. Previous sales have prioritized about 10% of mortgage notes for this purpose.

“The success of this sale is the foundation on which we will continue to build on the efforts of this administration to provide more opportunities for affordable homeownership and neighborhood revitalization,” said the Deputy Senior Assistant Secretary at housing, Lopa P. Kolluri, in a statement.. “We had a record number of interested nonprofits participating in this latest sale, and we look forward to offering more ticket sales opportunities to nonprofits in the future. “

The objective of the sale was to sell mortgage notes that have been subject to foreclosure or deeds in lieu of foreclosure to buyers whose mission is to increase the number of affordable housing, expand the opportunities for homeownership and rental housing and to revitalize communities by:

– Sell properties to low to moderate income home buyers at an affordable price for households earning less than 120% of family income in the area

– Rent properties at affordable rents for households earning less than or equal to 80% of the median US family income

The HUD Asset Sales Office is part of the Finance and Budget Office of the HUD Housing Office. The mortgage note multiple loan pools sold through December 1, 2021, sale were secured by vacant and abandoned properties secured by home equity conversion mortgages assigned to HUD following the death of the borrower and of any non-borrowing spouse where the time has come for the heirs to come forward.

The list of non-profit organizations that obtained mortgage tickets as part of the sale can be found in this sale report.

Source: ATH