Throughout this summer, the U.S. Department of Housing and Urban Development (HUD) will auction off approximately 20,000 distressed loans insured by the Federal Housing Administration (FHA), with more to follow later in 2013. Investors purchase these loans at market rate, generally below the outstanding principal balance, and agree to postpone foreclosure for a minimum of 6 months. During this time, the new servicer can work with the borrower to find an affordable solution so foreclosure can be avoided. Read the HousingWire article here for more details.