Washington – October 15, 2026 -- The U.S. Department of Housing and Urban Development (HUD) will offer eleven defaulted Section 232 healthcare mortgage loans with a combined unpaid principal balance of about $56 million in a sealed-bid auction on November 17, 2026.
HUD bundles 11 first-lien loans in Healthcare Loan Sale 2027-1
The sale, designated HLS 2027-1, covers loans that are due and payable and held by the HUD Secretary. Each loan is secured by a first-lien mortgage on one healthcare property, giving the sale eleven properties in total.
Collateral spans nine states from California to Pennsylvania
The properties are located in California, Connecticut, Florida, Michigan, Missouri, New York, North Carolina, Oklahoma and Pennsylvania. HUD has reserved the right to add or remove loans at its discretion, so the final pool may differ from the eleven loans announced.
FHA seeks to cut claim costs and lift insurance-fund recoveries
Through its Healthcare Loan Sale program, HUD sells defaulted healthcare mortgage notes previously insured by the Federal Housing Administration (FHA). The program aims to maintain access to healthcare in affected communities, reduce FHA claim costs, minimize the cost of holding defaulted notes and maximize recoveries to the FHA insurance fund.
Interested bidders can obtain sale details through the program's dedicated sale website or contact the Office of Asset Sales' Transaction Specialist.