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Regular Visitor
atoes
Posts: 7
Registered: ‎10-14-2011
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property is being sold subject to 24 CFR 206.125

Hi,

Does anyone know what does its mean of statement "property is being sold subject to 24 CFR 206.125"?

Thank you

 

Contributor
Mark_D
Posts: 11
Registered: ‎04-17-2010

Re: property is being sold subject to 24 CFR 206.125

New Visitor
jasondm
Posts: 1
Registered: ‎07-11-2013

Re: property is being sold subject to 24 CFR 206.125

This language is disclosed in foreclosure listings where the home bore a reverse mortgage note that defaulted due to the mortgagor's passing, failure to pay taxes, or both.

HUD regulates the terms under which these properties can be acquired, sold, marketed, & their listing treatment. If the property is an actively listed REO, a Buyer's Agent can represent a Buyer the same as a traditional foreclosure. Disclosing the subject conditions communicates that the seller has restrictions under which they are obligated.

Examples of conditions that properties subject to 24 CFR 206.125 are subject to include:

Disclose the condition of 24 CFR 206.125 in the listing from the date of the foreclosure, the lender must wait 6 months before applying for an FHA claim.

Sales price must be ≥ HUD appraised value without special permission from the SVA.

Seller repairs are disallowed unless required by local law, or required & approved by the SVA.

The transaction must be arm's length.

A superior Buyer's Rep will ask the listing agent how the subject property was priced, & to inquire if a HUD appraisal has been completed. It is also beneficial to know the actual date of foreclosure, although the property can still be marketed after a claim has been filed.
Silver Super Contributor
ptiemann
Posts: 1,199
Registered: ‎08-07-2009
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Re: property is being sold subject to 24 CFR 206.125

[ Edited ]

I tried to buy such a property on Dwight Ave in Sunnyvale once.. wrote an offer, the bank never responded, after 8 weeks I told the listing agent that I no longer wanted it. I was the 2nd or 3rd buyer on that property.. the previous buyer(s) had also lost patience after 6+ weeks. The buyer after me or the 2nd buyer after me finally got the property.

 

http://www.redfin.com/CA/Sunnyvale/836-Dwight-Ave-94086/home/673681

 

Look at the listing history how often the status changed. My offer was written ~ June 2011.

 

Be prepared for an extremely un-cooperative "seller" with a foreclosure after reverse mortgage.

In the case of Dwight Ave, the bank refused to turn on utilities. IIRC, they did not allow the listing agent to put utilities on, not even on his own dime!

 

Let's just say the average buyer will be very uncomfortable writing an offer without water/ gas/ electricity in the house.

In that particular house, one was very uncomfortable regardless of utilities.

Gold Super Contributor
TerriM
Posts: 3,222
Registered: ‎05-02-2011
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Re: property is being sold subject to 24 CFR 206.125


ptiemann wrote:

I tried to buy such a property on Dwight Ave in Sunnyvale once.. wrote an offer, the bank never responded, after 8 weeks I told the listing agent that I no longer wanted it. I was the 2nd or 3rd buyer on that property.. the previous buyer(s) had also lost patience after 6+ weeks. The buyer after me or the 2nd buyer after me finally got the property.

 

http://www.redfin.com/CA/Sunnyvale/836-Dwight-Ave-94086/home/673681

 

...

 

In that particular house, one was very uncomfortable regardless of utilities.


Nice looking house.  Why would someone be uncomfortable in it?  Someone die in it?

Platinum Regular Contributor
tjh
Posts: 4,741
Registered: ‎01-09-2010
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Re: property is being sold subject to 24 CFR 206.125


TerriM wrote:

Nice looking house.  Why would someone be uncomfortable in it?  Someone die in it?

ptiemann can weigh in but, my assumption is that is after the makeover?

Silver Super Contributor
ptiemann
Posts: 1,199
Registered: ‎08-07-2009
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Re: property is being sold subject to 24 CFR 206.125

TerriM, you looked at the version after it was rebuilt. The house had had only one owner, I think.
This particular neighborhood is called "victory village" and the story is that these little houses were built for the women whose men were in world war 2. The one that you looked at had been owned by a woman who bought it when she as young, maybe barely 20, back in the 1940ies. Quite possible she died in it.. do the math.. she would be in her 90ies now.
The same applies to several houses in "victory village"

Now imagine an old woman who has lived in her house for 70 years plus a hording habit (there were several additional storage type structures in the back), further not being able to maintain the house properly.

Believe me, the investor did a major cleanup there, besides turning it from a 2/1 (actually 2/2 with illegal second bath) into a legal(?) 3/2