Freddie Mac is selling more than $1 billion of soured U.S. home loans in its largest sale of the debt.

Potential buyers are bidding on three pools of nonperforming loans, with unpaid principal balances of about $660 million, $249 million and $125 million, according to debt broker Mission Capital Advisors. Homes tied to loans in the smallest group are all located in New York, while properties linked to the other two pools are geographically dispersed. Offers are due March 24.