Freddie Mac announced on October 28, 2026, that it had auctioned 25 deeply delinquent residential mortgages with about $3.8 million in unpaid principal to Igloo Series VII Trust. The Freddie Mac loan sale is expected to settle in December 2026.

Key Takeaways

  • The loans are secured by first liens on properties in Texas and are currently serviced by Selene Finance LP.
  • Previously modified mortgages that later became delinquent make up about 49% of the pool’s balance.

Freddie Mac loan sale and auction terms

The loans came from Freddie Mac’s mortgage-related investments portfolio. The average loan had been delinquent for 15 months and had a balance of approximately $154,000.

Freddie Mac marketed the pool through its EXPO auction format, which generally offers smaller pools with a longer marketing period than its standard offerings. Marketing for this transaction began on September 16, 2026.

The second-highest bid was in the low-to-mid 90s as a percentage of unpaid principal balance. Freddie Mac did not disclose the winning bid price in the announcement.

Requirements for distressed borrowers

Freddie Mac said the borrowers had likely already been evaluated for loss mitigation, such as loan modifications or other alternatives to foreclosure, or were in foreclosure.

Purchasers must honor existing loss mitigation agreements, complete pending loss mitigation actions and, except in limited cases, solicit distressed borrowers for additional assistance.

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