May 10, 2013
A press release issued by the FHA and HUD announces an auction of delinquent FHA mortgage loans in June of 2013.
According to HUDNo.13-066, the move is intended as a form of relief in distressed areas and as a part of, “a broader effort to address the housing market’s shadow inventory and to target relief to areas experiencing high foreclosure activity” according to the release.
The press release also adds, “This summer, HUD will sell approximately 20,000 distressed loans through its expanded Distressed Asset Stabilization Program (DASP) to increase recoveries to FHA’s Mutual Mortgage Insurance (MMI) Fund from non-performing FHA-insured loans, while contributing to stabilization and recovery in some of the nation’s communities hit hardest by the housing crisis.”
The auction will proceed in a manner similar to past note sales. “HUD’s offerings will be conducted through two auctions – on June 26th, the Department will sell approximately 15,000 notes through ‘national pools’ and on July 10th will offer approximately 5,000 notes through Neighborhood Stabilization Outcome (NSO) pools.”
“The NSO pools will offer qualified bidders notes located in the following areas: Southern California, Chicago, southern Ohio (including Cincinnati, Columbus and Dayton), and the entire state of North Carolina. HUD is expanding the use of single-family loan sales through a competitive bidding process” that includes selling loan pools off to the highest bidder. Those bidders may include non-profit organizations.
“We’ve seen a tremendous response to our note sales which allow us to support particular areas of our country hard-hit by foreclosures while improving outcomes for FHA,” said FHA Commissioner Carol Galante in the FHA/HUD press release, adding, “These auctions allow us to continue stabilizing hard-hit housing markets and to improve FHA’s overall financial position at the same time.”
In March, HUD sold “more than 16,000 seriously delinquent mortgages” in states including California, Ohio, and Florida. For more information on the upcoming auction, contact the FHA/HUD directly at 1-800 CALL FHA.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
Browse by Date: