Can someone please explain what it means when a listing states, "Property is sold subject to 24.CFR 206-125"?

Asked by Janet Unkefer, Minerva, OH Sat Mar 19, 2011

Help the community by answering this question:

+ web reference
Web reference:


Phil Rotondo, Agent, Melbourne, FL
Sat Mar 19, 2011
The Sale is subject to Housing and Urban Development Title #24 Part 206 section 25.

Please see…
Web Reference:
4 votes
Elise Timpe, Agent, Corona, CA
Thu Jul 25, 2013
Someone defaulted on an FHA loan and it was foreclosed on. Now, it's being sold as an REO (real estate owned). Similar to the story with HUD homes.
Anyone can buy it for no less than the appraised value if they aren't related to certain parties previously involved in the home.
It's just something that must be included in the listing verbiage so that it's understood that all the requirements are in place that are laid out at:…
The things involving the sale are outlined in the last 3 paragraphs of that page.
3 votes
Can you tell me if these properties qualify for the $100 down payment incentive if a buyer is using an FHA loan??? I can't seem to find the answer any where, Thanks!
Flag Tue Mar 24, 2015
Tom Colvin, Agent, IN,
Mon Feb 20, 2012
This isn't necessarily a HUD home. This is housing and urban development standard for secondary loan companies to foreclose on their properties. These may be FHA insured but they aren't all HUD homes. Make sure you get title insurance to insure a clean title. All Hud homes (hud foreclosures) come from an FHA insured home. FHA federal housing commission insures the mortgagor from losses if the owner would default. This default process is different in every state. These houses could be fannie mae owned which would follow the same procedure.In layman terms they(owner and bank) have to follow this foreclosure procedure in order to liquidate the house during the foreclosure or preforeclosure period after a default. A default typically is after being 90 days late on payments but if its a judiciary state like Indiana then the court would determine the default. Feel free to email me for more info at
2 votes
Ronald Shaff…, Agent, Toms River, NJ
Tue Jun 28, 2011
The home is a government owned-HUD property. To find similar properties owned by HUD be sure to visit
2 votes
Bea, Home Buyer, Detroit, MI
Wed Feb 29, 2012
I've also read CFR206.125. Can someone say in layman's terms, can a person buy the property free and clear at the listed price. Or must you pay the appraised value? They are NOT the same.
1 vote
Clay Whaley, Agent, Rensselaer, IN
Thu Nov 10, 2011
The home cannot be sold for less than the appraised value.
1 vote
Hello, How do you find out the appraised value?
Flag Mon Nov 10, 2014
Donna Benton, , Santa Monica, CA
Fri Nov 4, 2011
So I read 24 CFR 206, but is there any issues for a new buyer of the property.?
1 vote
Philip Hille…, , Bentonville, AR
Tue Jun 28, 2011
Yep it is a HUD sale, They can be great deals for your clients.
1 vote
Licia Leal P…, Agent, Aventura, FL
Tue Jun 28, 2011
The Sale is subject to Housing and Urban Development Title #24 Part 206 section 125.
1 vote
Rich Homer, Agent, NAPLES, FL
Tue Jun 28, 2011
Phil is correct. <ore information can be found at
1 vote
Erica Jarrett, Home Buyer, Gainesville, GA
Tue Mar 24, 2015
Can anyone tell me if these properties qualify for the $100 down incentive if a buyer is using an FHA loan??? I can't seem to find the answer any where
0 votes
Benjamin Gre…, , Gulf Shores, AL
Sun Aug 19, 2012
206.125 - Acquisition and sale of the property.

Follow this link for your answer
0 votes
Justin Ruzic…, Agent, Greenville, SC
Tue Jun 28, 2011
Gerard, great answer; simple and clear...
0 votes
Gerard Carney, Agent, Spring Hill, FL
Tue Jun 28, 2011
The HUD home is subject to laws that outline the sale and the numbers are just that the reference numbers for the law being outlined
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more