HUD lease back to previous owner! Lawyers wanted!
This is a queation whether the following scenario that I find myself in will be legal to pursue.
State: Pennsylvania
A friend of my grandmother has her house going on sheriffs sale because she has not paid taxes on her house. The sale will commence next month and she will have nowhere to go and surely will need to be housed by the local housing authority. She wont be able to sell in that time because the market is cold in the area and the house is out dated.
If I were to make the purchase at the sheriff sale and she qualified for housing assistance and I was able to get the house qualified for HUD, then could I rent the house back to her?
I have never met the woman. This is the house she grew up in and lived for 8 decades. Its the best way I can see myself helping her out.
Please let me know what youre thinking. I obviously do not know much about HUD or how the tenant process works.
All are welcome to comment.
How much is owed in taxes? Can you pay off the taxes and put a motgage on her house? Is there a current mortgage? If she can't pay taxes how will she pay you rent? Do owners have the right if redemption in PA after a tax sale? if so even after a tax sale she csn't be forced out of her house for some period of time and if taxes are paid along with interest the house can be redeemed and given back to her. That could give you more time to help her find a solution to remain in her home. I would check with the taxing authority to see what the legal process is and at what point the resident is forced out of the house. Good luck in helping her out.
I dont believe theres a mortgage and its not much in taxes. I would not charge her much rent but rather qualify the home under section 8 and she can stay at her place.
@Derek Persuit You should contact the housing authority where the house in located. Most places have a long waiting list to get into section 8. You might be able to get her to be considered homeless which would allow her to go to the top of the list. That does not mean they will automatically have a section 8 voucher available.
If there are no other liens, you should consider acting before the auction.
If you are trying to help her check out this information
https://www.pabar.org/pdf/guidelegalservicessc.pdf
Look at the property tax rebate section. There is a number included. I do not understand enough about PA taxes but that property tax might have been suppose to have been rebated.
Thanks, I appreciate it.
So you want to buy the lien to the property.....have her apply for Section 8......cross your fingers that she don't die before getting approved for a voucher.....and have her stay in the house and you collect the government's money?
#IssaFelony
Thanks for talking politely about the woman anastasia. #pleaseuseenglish
- Property Manager
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What are you saying @Anastasia Jordan??? Derek is not related to the women he would be housing. Nothing in his proposal is remotely illegal or unethical. On the contrary, I think it's quite noble!
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Update on the status: The section 8 vouchers for the county this lady lives in have been closed for 3 years.
I am unable to provide her section 8 housing then.
Next steps: Purchase house prior to tax sale and have her remain in the property for a year until she is able to find another place to stay.
#2 Foreclosures Contributor
- Paradise, CA
Originally posted by @Derek Persuit:
Update on the status: The section 8 vouchers for the county this lady lives in have been closed for 3 years.
I am unable to provide her section 8 housing then.
Next steps: Purchase house prior to tax sale and have her remain in the property for a year until she is able to find another place to stay.
if you buy the property at sale, free of any encumbrances (Other liens that might survive the tax sale...like loans), you are free to rent it to whomever you want to rent it to. Free to do with it as you see fit. If you buy it WITH liens, you are still free to do with it what you want, subject to satisfying any potential surviving lien.
How about this...
Title search the property to find out about ALL liens.
If the numbers look decent to you, agree to conditionally pay all liens on the property.
The condition being, the owner agrees to deed property to you with the corresponding condition of tenancy for life for her, and only her.
No right to sell, encumber, rent out etc. For her.
Upon her death, or by relinquishing tenancy due to nursing home etc., life tenancy is terminated.
You now have the property for your own used.
Just a thought...
Originally posted by @Tony Gunter:
How about this...
Title search the property to find out about ALL liens.
If the numbers look decent to you, agree to conditionally pay all liens on the property.
The condition being, the owner agrees to deed property to you with the corresponding condition of tenancy for life for her, and only her.
No right to sell, encumber, rent out etc. For her.
Upon her death, or by relinquishing tenancy due to nursing home etc., life tenancy is terminated.
You now have the property for your own used.
Just a thought...
Checked out, no liens except the taxes.
And Tony, I like that idea and have thought about it. The downside is that I will think the only time I get to cash in on this property is when this woman passes or is incapable of taking care of herself. Not something I want on my mind. She will have tenancy for a year, rent free. I will help her move to wherever whenever she wants (likely senior assisted housing). Unfortunately she doesn't have family to help her out of her bad situation and no one else could offer her to stay in her house any longer than 2 weeks from now.
After I found that she wouldn't be able to receive a section 8 voucher, I thought that I should be out on this deal but I'm the only one who could offer her to stay so I feel obligated to continue.
Originally posted by @Tony Gunter:How about this...
Title search the property to find out about ALL liens.
If the numbers look decent to you, agree to conditionally pay all liens on the property.
The condition being, the owner agrees to deed property to you with the corresponding condition of tenancy for life for her, and only her.
No right to sell, encumber, rent out etc. For her.
Upon her death, or by relinquishing tenancy due to nursing home etc., life tenancy is terminated.You now have the property for your own used."
How would this work? I found a similar situation with an elderly gentleman, but he has a lien on his house. He wants to retire. Trying to figure out how to potentially make this work without putting myself at a huge risk.
