Freddie Mac announced late Friday that it sold $305 million in seriously delinquent loans from its mortgage investment portfolio.

The sale, which was initially announced last month, was completed via auction, with two pools containing 1,611 total loans being sold to a pair of buyers.

According to Freddie Mac, these loans have been delinquent for approximately two years, on average.

In its announcement, Freddie Mac said that given the deep delinquency status of the loans, the borrowers have likely been evaluated previously for or are already in various stages of loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. 

Mortgages that were previously modified and subsequently became delinquent comprise approximately 40% of the aggregate pool balance, Freddie Mac said.

The aggregate pool is geographically diverse and has a loan-to-value ratio of approximately 91%, based on broker price opinion.

The winning bidder for Pool #1, which has a total unpaid principal balance of $209.4 million on 1,180 loans, was Pretium Mortgage Credit Partners I. Pool #1 carries a collateralized loan-to-value ratio of less than or equal to 110%.

The loans in Pool #1 are 24 months delinquent, on average, and carry an average loan balance of $177,500.

The winning bidder for Pool #2, which has a total unpaid principal balance of $95.2 million on 431, was Bayview Acquisitions, LLC. Pool #2 carries a collateralized loan-to-value ratio above 110%.

The loans in Pool #2 are 26 months delinquent, on average, and carry an average loan balance of $220,900.

JPMorgan Chase (JPM) currently services the loans and servicing will be transferred once the sale is settled.

The transaction is expected to settle in Dec. 2015.

The sale is Freddie Mac’s seventh non-performing loan sale since the Federal Housing Finance Agency announced the new requirements for sales of NPLs by Freddie Mac and Fannie Mae to make sure the loans go to capable mortgage servicers.

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