HVLS 2024-2 will be up for bid on May 7 and comprises approximately 1,265 notes with loan balances of close to $346 million. The sale consists of due and payable residential loans secured by first-lien HECMs, where borrowers and non-borrowing spouses are now deceased, the announcement from HUD's office of asset sales said. 

Nonprofits, government agencies and for-profit businesses, are all eligible to bid in the sale. HUD will also consider offers from joint ventures and other partnerships between various enterprises. 

HUD vacant loan sales, which were first introduced in 2016, emerged as a means to help increase supply through the disposition of assets. As much as 50% of an offering is sometimes prioritized for nonprofit and government organizations in hopes of providing housing, including homeownership opportunities for residents making under 120% of area median income. Unlike prior HVLS auctions, no mention was made of designated allotment for specific buyer segments in the latest announcement.

Through the first half of 2023, nonprofits have purchased 28% of all HVLS loans for sale since the program's launch, HUD said in a report late last year. Settled loan count totaled 10,280. 

An approximate 52% share of loans sold through HVLS come from 10 states. Florida headed the list with 13%, with  Texas in second place at 7%. California, Illinois and New York all followed at 5% each.