24 CFR 206.125

Property Sold Subject To HUD Guidelines 24 CFR 206.125

What the heck does this mean?
Submitting an offer
Multiple Offers


This means that the mortgage that was foreclosed was a reverse mortgage.

The sale of these properties is regulated by HUD, and 24 CFR 206.125 is the specific location in the federal code. In essence, these regulations control how the property is sold and the Seller CANNOT deviate from these guidelines.

Some particulars:

  • The most important, at least for buyers, is that the property CANNOT sell for less than the appraised value, which is the list price
  • We accept offers from both Owner Occupants and Investors
  • Earnest Money for investors and cash offers is a minimum 10% or $1,000, whichever is greater
  • Earnest Money will be held by Sellers attorney
  • 90% of the time the Seller is Fannie Mae; the other 10% it as another GSE (Government Subsidized Entity)
  • Property is NOT Homepath eligible
  • Property is NOT a HUD home
  • There are deed restrictions for investors
  • Seller WILL NOT pay closing costs
  • Seller WILL NOT do any repairs
  • Seller WILL NOT connect utilities
  • There is a cap on what the Seller will spend on these properties; this can result in the property not being trashed out, cleaned, etc.
  • Property is SOLD AS-IS, WHERE IS

If your offer does not meet these particulars, please know it will be rejected. Seller counter, if any, will be at least these requirements.

Please also note that, once we are under contract, Seller will not offer any concessions, repairs, or price reductions for any issues that arise during the Due Diligence period or loan approval process. Buyer can, of course, terminate during that period.


Please send all offers to:

  • e-mail

(preferred, attachments must be smaller than 10mb)

  • fax: 678-922-7348

Your offer must include all the following:

  • Signed Purchase Agreement
  • POF (Proof of Funds) or Pre-Approval Letter, dated no older than 30 days, and funds shown must equal or exceed purchase price.
  • Buyer name must be exactly as Buyer wishes to take title. Name changes are not allowed. Other persons, such as spouses or partners, cannot be added later.
  • If Buyer is a company, documents that show signer is allowed to sign.
  • Indicate in the Special Stipulations section whether Buyer is an Owner Occupant or Investor.

Seller counter, if any, will be on GAR forms and include addenda.


If you are the Buyer and are working with an agent, or will be presenting an offer via another real estate agent, that agent can show you the property and assist you in submitting an offer. Please contact them with any questions you may have.

If are not working with an agent and would like us to show you the property and assist you in submitting an offer, please send a text to 404-953-5673 with the property address you are inquiring about, your name, and that you are not working with an agent. We strive to schedule appointments within 48 hours, Monday through Friday, 10am to 3pm, weather and schedule permitting.


Information regarding availability is accurate on our website and the MLS. If it shows available, go ahead and show. Showing instructions are found in the private remarks of the MLS.


The following properties have multiple offers. Seller has requested your Highest & Best offer. Please download and return the necessary form before the due date along with your Highest and Best offer.