The Department of Housing and Urban Development plans to sell 11 healthcare mortgage loans at auction in November, each secured by a skilled nursing or assisted living facility. The facilities sit in nine states, though the public notice names neither the states nor the facilities. The loans are first-lien notes that HUD holds, and they will be sold without Federal Housing Administration insurance.
What HUD’s loan sale HLS 2027-1 actually offers
The sale is described in a Federal Register notice published September 25, 2026 by HUD’s Office of Asset Sales. The notice calls the offering “11 unsubsidized healthcare mortgage loans, without Federal Housing Administration (FHA) insurance,” and describes the collateral as 11 skilled nursing and assisted living facilities located in nine states. HUD refers to the transaction as HLS 2027-1.
In plain terms, HUD is the holder of these mortgage notes. Rather than keep collecting payments and managing the loans, the department is offering them to private buyers. The notice states that the loans “will be sold without FHA insurance and with HUD servicing released,” meaning the buyer takes on the notes without the federal insurance backing that typically sits behind HUD-related healthcare lending, and HUD steps away from servicing them.
The word “unsubsidized” in the notice describes the loans themselves. It does not carry any further explanation in the document, and the notice does not break down balances, interest rates or the condition of any property.
Nine states and 11 facilities, none named
The count is the one hard geographic fact in the notice: 11 facilities, nine states. Because the number of facilities exceeds the number of states, at least two states must contain more than one of the facilities, but the notice does not say which. Neither the states nor the facilities appear by name anywhere in the notice, so no reader can tell from the Federal Register text whether a particular home, operator or community is part of the sale.
The notice points to a Bidder’s Information Package, which HUD says it will make available on or about October 9, 2026. The notice does not say that the package will be published for the general public, and this article makes no claim that it will be.
The auction calendar and bidder terms
Every milestone in the notice is still ahead as of October 3. The sale “is scheduled to occur on or about November 17, 2026.” HUD says the award will come on or before November 20, 2026, and closing is set for on or about December 9, 2026. Nothing has been bid, awarded or closed.
The notice also sets a financial bar for participants. Bidders must put up a minimum deposit of the greater of $100,000 or 10 percent of the aggregate price of all their bids. The deposit is measured against the total of all bids a participant submits, not against each loan separately.
The gap between the November 20 award deadline and the December 9 closing is 19 days, and the whole sequence from the information package to closing spans roughly two months, from October 9 to December 9, 2026.
The dates carry the qualifier “on or about” for the Bidder’s Information Package, the sale and the closing, which leaves HUD room to move them. Only the award date is framed as a deadline, “on or before” November 20. A reader following the sale should treat October 9 as the first checkpoint, since the package date is the earliest of the four.
Who signed the notice and who answers questions
The notice is signed by Joseph M. Gormley, President of the Government National Mortgage Association, who is identified as performing the delegable duties of the Assistant Secretary for Housing and Federal Housing Commissioner. The sale rests on Section 204(a) of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act of 1997, the authority the notice cites.
For questions, the notice lists John Lucey, Director of the Office of Asset Sales, at 202-402-3927, and a transaction specialist at 1-844-709-0763. Bids are handled on the platform market.missioncap.com, with HUDSales@FalconAssetSales.com listed as the transaction specialist’s email. Those contacts are directed at bidders and the sale process itself.
What the notice leaves out about residents
A sale of mortgage notes on care facilities raises an obvious question about the people who live in them. The notice does not answer it. The document contains no language about residents, borrowers’ obligations to residents, or what a new noteholder must do once it owns the loans. This article therefore says nothing on those points beyond the fact of the omission.
What the record does establish is narrow and checkable: a federal agency has announced a sale of 11 mortgage notes, the nine states are unidentified, and the next documented step is the Bidder’s Information Package expected on or about October 9, 2026. The Federal Register notice from HUD’s Office of Asset Sales remains the only public document that sets those terms out.
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AI assistance was used in producing this article, which was reviewed against the official documents it cites.
David M. Keller is a finance writer based in Columbus, Ohio, covering personal finance and consumer-focused economic topics. He earned his degree in journalism from Ohio University and began his career reporting on local business and economic trends for a regional media outlet. Since then, he has contributed to a variety of online publications, focusing on clear, practical coverage of topics such as cost of living, debt, and everyday financial decision-making.
