On May 28, Fannie Mae announced an upcoming sale of approximately 2,333 reperforming loans, with an unpaid principal balance of approximately $565 million, which are available for purchase by qualified bidders that submit bids by June 23. Reperforming loans are loans that were previously seriously delinquent, have since reperformed for a period of time, and are current at the time offered for sale. Under the sale terms, buyers must provide loss mitigation options to any borrower who re-defaults within five years of closing and must honor any loss mitigation efforts already approved or underway at the time of sale. Purchasers must also agree to offer delinquent borrowers a “waterfall” of loss mitigation alternatives, including loan modifications that may involve principal forgiveness.