HECM Reverse Mortgage Foreclosure Offer Guidelines and Submission Info for Agents


Properties Being Sold Subject to HUD Guidelines 24 CFR 206.125



  1. This property is a Fannie Mae Reverse Mortgage REO.

  2. The code above allows an heir to purchase the property at 95% of the listed price.

  3. Other stipulations of this type of property include:

  4. Property cannot be sold below appraised value (LIST PRICE)

  5. No mediation

  6. No electronic signatures accepted

  7. No repairs, “AS IS AT TIME OF CLOSING”

  8. No buyer closing costs paid by seller are allowed on the HUD

  9. Buyer pays HOA Doc & Transfer Fee

  10. No utilities are on. Buyer may pay to have them on for inspection at their own expense with seller approval

  11. No agent transaction fees allowed on the HUD, regardless if the Buyer is paying

  12. Seller will pay Seller’s closing costs

  13. Any real estate transfer fees or taxes due will be the sole responsibility of the purchaser

  14. Seller will bring taxes and HOA current through closing

  15. 10% deposit on cash offers (Cashier’s Check)

  16. $1,000 minimum deposit on financed offers (Cashier’s Check)

  17. 60 day MINIMUM escrow period. May be longer if title is not clear. If Seller can close sooner, they will.

  18. Homepath financing is not available on these properties

  19. Properties sold in “AS IS” condition at time of closing

  20. PLEASE USE BUYER’S LEGAL NAME(S), AS SHOWN ON DRIVERS LICENSE

  21. If purchaser is an LLC, must provide stamped articles of incorporation pages along with offer to purchase

  22. Buyer will need to pay for utilities to be activated for inspections, or Selling agent may turn on utilities at Buyer’s expense with permission

  23. Offers that Do Not meet these Guidelines may be considered incomplete and REJECTED by Seller

  24. Please email complete offer package to gulfwinds@gmail.com. Subject line to include: OFFER: with full property address. Allow a minimum of 3 business days for a Seller response.