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HUD to offer about 4,200 vacant reverse mortgage loans in Oct. 27 competitive sale

HUD plans to sell Secretary-held HECM loans with a balance of about $1.3 billion in sale HVLS 2027-1. The notice describes the bidding process and lists entities that may not bid.

HUD Gazette staff · Sept. 28, 2026 · Source: Federal Register 2026-19458

Key facts

Sale date
Oct. 27, 2026
Loans offered
Approximately 4,200 HECM loans, about $1.3 billion in loan balance
Sale type
Competitive sale; the seventeenth of its type
Who is affected
Prospective bidders; certain entities are ineligible to bid
Document number
2026-19458 (published Sept. 23, 2026)

HUD has announced that it intends to offer approximately 4,200 home equity conversion mortgages (HECM, or reverse mortgage loans) in a competitive sale, designated HVLS 2027-1. The loans are secured by vacant properties and have a loan balance of approximately $1.3 billion. The sale will be held on Oct. 27, 2026.

The loans are due and payable, Secretary-held reverse mortgages. They are first liens on single family, vacant residential properties. All borrowers are deceased, and no borrower is survived by a non-borrowing spouse.

HUD says the initiative supports its continued efforts to reduce financial risk to the Mutual Mortgage Insurance Fund and to promote the efficient disposition of defaulted assets. The notice identifies this as the seventeenth sale offering of its type.

The notice also generally describes the bidding process for the sale and identifies certain entities that are ineligible to bid. Parties interested in participating should review the full notice, Document No. 2026-19458, for those details.

This summary was drafted with AI assistance from the source document and reviewed by an editor. It does not replace the official document. Read the source before acting.