There's been a new type of Tampa Foreclosure hitting the market lately, and they're being sold with some verbiage that may be confusing to you if you don't know what it means.
The verbiage that is being used on these Tampa Foreclosures is: "Property is being sold subject to 24 CFR 206.125." According to Jeff Byrd at www.results.net, this essentially means the following:
"There is a new type of REO (Lender Owned ) property starting to hit the market. You may have seen this statement in the remarks section when looking for homes on the Internet. "This property is being sold subject to 24 CFR 206.125". This identifies the property as an REO that is being marketed after it had a Reverse Mortgage on it. Reverse Mortgages are sometimes know as Home Equity Conversion Mortgages (HECM) . In many cases these were probably reverse mortgages taken out during the boom by someone over 62 and in many cases, not all, they are in better condition than some other REOs because they were transferred back to the lender due the death of the owner rather than as a result of a financial or fraudulent situation. They are becoming available because of the drop in in the value of homes since the peak of the market when some lenders were aggressively marketing reverse mortgages. The expectation at that time was that values would continue to increase. These REOs typically don't have any owner occupant or NSP buyer restrictions when they come on the market. There are a couple of things to note with them. They generally will not sell the property for less than the asking price which is usually an as-is appraised value established by an FHA roster Appraiser. They are sold As-Is at the time of closing with no repair reimbursements or allowances. They won't pay for home warranties. Home inspections and the connections of utilities for inspections will be at the buyer's expense. Also the seller will not contribute to buyer's closing costs. They should be viewed as soon as they come on the market because some of them are very good values and end up having multiple offers on them."
What is a Reverse Mortgage? Essentially, it is a loan available to home owners or home buyers over 62 years old, enabling them to access a portion of the subject home's equity. The home owners can draw the mortgage principal in a lump sum, by receiving monthly payments over a specified term or over their (joint) lifetimes, as a revolving line of credit, or some combination thereof.
Please feel free to visit Cornell University Law School's Legal Information Institute online, where you can read the full version of the Statute.
Josh Parker is the Team Leader of ProFusion Property Group, located in the Trinity & Odessa area, and an active Tampa YPN Committee Member. ProFusion Property Group specializes in the listing & sale of residential real estate all over Pinellas, Pasco & Hillsborough County. His team has successfully sold over 175 units for their clients in 2012, while maintaining an exceptional “sold price to list price” statistic of 99.08%. For more information, free tips, and free home searches, please visit Josh & the ProFusion Team at www.profusionpg.com!