Key findings from the Center's HUD investigation
- Seven years after the real estate market crashed, major investors are again buying mortgages by the thousands. This time, they are buying from the government — at a significant discount.
- Over 98,000 mortgages have been sold to investors by the Department of Housing and Urban Development (HUD) — at times as little as 41 percent of the mortgages’ collective value.
- HUD’s mortgage sales program is meant to help distressed homeowners avoid foreclosure. But rather than offering better terms to borrowers, the new owners often flip the homes for a profit, advocates say.
- Only 16.9 percent of the mortgages sold between 2010 and 2014 have successfully avoided foreclosure, according to a HUD reports. That number also includes third party sales or deed-in-lieu, which still result in the homeowner losing their home.
- Homeowners don't know when their mortgages are sold, and can't advocate for better terms before auction, which they’re entitled to under Federal Housing Administration protection.