What is CFR 206.125, and what does it mean for the buyer?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. The HECM Servicing Department of HUD specializes in knowledge about reverse mortgages, & they are in the best position to address code questions that govern the treatment of these REO assets.March 20 2012 - Plano77YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.