HUD Floats Perm Distress Note Sales Program
HUD, the Department of Housing and Urban Development, that administers programs that provide housing and community development assistance, has proposed recently a permanent program for sale of seriously delinquent mortgages.
I was actually very surprised by this announcement and welcomed it.
The HUD note sales stopped prior to 2020 due to COVID and the only sales HUD held were HECM Vacant property sales.
The proposed rule requires all note purchasers to adhere to mission-oriented post-sale requirements, including the establishment of exclusive first-look opportunities for prospective homeowners.
The focus on giving priority to nonprofits and governmental entities for exclusive first-look opportunities is significant, as it suggests a push towards stabilizing homeownership and providing support to those who may be struggling.
The announcement implies the HUD is prepping for SFR delinquent sales in the future, and in turn, HUD sales will inject long needed SFR inventory in the capital markets and therefore revival of the real estate distressed market to benefit the homeowners.
Feel free to reach out if you have specific questions about the implications of these changes, or if you are looking for insights on how this could affect homeowners and the broader market.
HUD, the Department of Housing and Urban Development, that administers programs that provide housing and community development assistance, has proposed recently a permanent program for sale of seriously delinquent mortgages.
I was actually very surprised by this announcement and welcomed it.
The HUD note sales stopped prior to 2020 due to COVID and the only sales HUD held were HECM Vacant property sales.
The proposed rule requires all note purchasers to adhere to mission-oriented post-sale requirements, including the establishment of exclusive first-look opportunities for prospective homeowners.
The focus on giving priority to nonprofits and governmental entities for exclusive first-look opportunities is significant, as it suggests a push towards stabilizing homeownership and providing support to those who may be struggling.
The announcement implies the HUD is prepping for SFR delinquent sales in the future, and in turn, HUD sales will inject long needed SFR inventory in the capital markets and therefore revival of the real estate distressed market to benefit the homeowners.
Feel free to reach out if you have specific questions about the implications of these changes, or if you are looking for insights on how this could affect homeowners and the broader market.