Reverse Mortgage take back can't be sold for less than list price

[Nikki Cummings]

I made an offer ($50K) on a house that has been on the market a week and was listed for $63K with $1K earnest money.  

They countered back at 63K and $6300 in earnest money. They said that because this is a Reverse Mortgage take back that the house can not, by law, be sold for less than list price the first 6 months it is listed or until another appraisal has been completed.  Any advice? Anyone heard of this?    

[Phil G.]

HUD 24 CFR 206.125 governs this type of sale.