Can "borrower" use Section 8 housing vouchers to pay a note?

Question

Hello BP,

I bought my first NPN in NY State a few month ago. The borrower is deceased. No payments have been made for over a year.

The heirs/relatives live in the home still. I have been communicating with them. They are responsive and friendly. They actually sent a copy of the borrower's will directly to my attorney.

They agreed to start paying the $500 next month but also are seeking government housing assistance. My first thought was Section 8, but I am still unclear on what agency.

They asked me for a letter stating the monthly payment and that utilities were not included.

MAIN QUESTIONS:

Do any of you have notes being paid with housing assistance vouchers (such as Section 8)?

What is the process? Anything I need to be aware of?

What do I need to supply these people with to give them the greatest possibility for approval of housing assistance?

What are the hoops, paperwork/forms, etc need to be completed?

Thanks!

Zack

Dion DePaoli · Answer

@Zachary TaylorIn short - No.  You can't pay a mortgage bill with a section 8 coupon.  Not the same type of program.  They 'may' qualify for some hardship assistance through local or state programs but that will be temporary.  It won't be a permanent supplement to a lack of income to service the mortgage debt.  Unfortunately, it sounds like they collectively can not afford to keep the property.  They will need to explore alternative solutions to foreclosure like short selling or deed in lieu if possible.  Don't spend a bunch of time trying to get blood from a rock.

Bob E. · Answer

Check for liens and if the property is clear have the estate quite claim it over to you and rent it back to them, section 8 or not.

Bruce Lynn · Answer

I don't think so in most cases.   You could call their housing authority and ask, but I've never heard of that before.  I've heard lots of people ask for it.