Previous owner was taking money under the table with section 8

[Ryan Cleary]

I purchased a duplex.  The seller provided a phony lease for $1,071.

I come to find out that the tenant was section 8, the real lease that section 8 has is for $867.

We have now found out that the seller had a promissory note and the tenant was paying the difference every month without section 8 knowing.

What are my options here?  This seller has been a nightmare and it has been one nasty surprise after the next piecing together all the sketchy things the previous landlord has done.

[Linda S.]

@Ryan Cleary,

The seller lied to you, I'm so surprised!  You mean to tell me there are dishonest people out there? lol welcome to real estate!  

Remember-- it takes 2 to tango, obviously the tenant couldn't afford the place, but wanted  it so offered $$ under the table.   It's illegal in section 8.    You can't enforce an illegal contract, so realize that upfront.  First-- talk to the tenant, maybe their voucher amount has increased to the $1071,  or maybe you can remove appliances responsibility or something to lower your costs.   I guess for me-- it all depends on the person, it's A LOT easier to keep someone who's living there, staying there, and especially section 8!     

If you decide to keep the tenant, great. If you'd decide you want to get rid of them-- I'd just be upfront, what you were doing was illegal, against section 8 laws-- I want you out ASAP. In VA section 8 requires 2 full months to break a lease, give them the option to leave ASAP or you can report the violation. This is someone's livelihood, a voucher helps low income, I say don't punish the person because they had a shady previous landlord! Again-- make your decision on the tenant, and how they are as a tenant-- do they take care of the house, are the responsible?