Sale of HUD Loans Helps Over 16K Avoid Foreclosure

Washington, DC, March 16, 2015—The sale of $16.7 billion in nonperforming loans by the U.S. Housing and Urban Development Department helped the owners of about 16,700 homes avoid foreclosure, reports Bloomberg Business.

Almost half of the 79,029 loans for which HUD has received reports were resolved as of February 6, meaning they are no longer considered nonperforming after having gone through foreclosure or another outcome, the department said in a report released Friday. About 44% of resolutions resulted in the prevention of home seizures, and 16% of resolved loans were reperforming, with borrowers making timely payments.

A total of 98,007 loans have sold since the program began in 2010, with $13 billion of debt in national pools and $3.7 billion in local portfolios, HUD says.