HUD Sells 1,500 Reverse Mortgage Loans Totaling $454 Million as Heirs Fail to Resolve Debts
The U.S. Department of Housing and Urban Development (HUD) has put approximately 1,500 reverse mortgage loans, with a total balance of about $454 million, up for sale. These loans belonged to borrowers who have died, and the homes are still occupied by individuals who are not borrowers. HUD stated that heirs have not come forward to resolve these loans within the allotted time. Instead of auctioning off the houses, HUD is selling the mortgage debts themselves to investors, who will then take over the loans and be responsible for their resolution. This action highlights a growing complication in the transfer of housing wealth, particularly when reverse mortgages are involved, as heirs often face a tight 30-day window to resolve the loan after the borrower's death.
