Weekly Real Estate News
Summary
Eleven healthcare mortgage loans are scheduled for auction in November.
The U.S. Department of Housing and Urban Development plans to auction 11 defaulted healthcare mortgage loans with a combined unpaid principal balance of approximately $56 million on November 17. The portfolio is secured by 11 healthcare properties across nine states, HUD said in an October 15 announcement.
The properties are in California, Connecticut, Florida, Michigan, Missouri, New York, North Carolina, Oklahoma and Pennsylvania. HUD has not disclosed individual property values or the prices bidders might offer.
The sale, designated HLS 2027-1, was previously announced in a September 25 Federal Register notice. That notice set an anticipated award date on or before November 20 and closing on or about December 9. Thursday’s release adds the approximate aggregate unpaid balance and the geographic distribution of collateral.
These are due-and-payable loans formerly insured through FHA’s Section 232 healthcare program. The auction will transfer the notes without FHA insurance; it is not a sale of HUD-owned operating healthcare facilities. Winning bidders will acquire mortgage claims subject to the loan-sale agreement and applicable law.
HUD says the program is intended to reduce the cost of holding defaulted assets and recover funds for the insurance program. It may add or remove loans before bidding. The eventual recovery depends on bids and closing, neither of which has occurred.
