A failed inspection stops the check, and the mortgage does not stop.
Housing choice voucher payments can be suspended when a unit fails inspection. That turns a repair problem into a cash flow problem very quickly.
Sell before the next inspectionHow the inspection cycle works
Units in the housing choice voucher program are inspected against housing quality standards before assistance begins and periodically after. Louisville Metro Housing Authority and other Kentucky housing agencies administer this locally.
Fail an inspection and you get a correction period. Fail to correct and payments can be abated, meaning the assistance portion stops while the tenant remains in place. You still own the unit and you still owe the mortgage.
Small items fail more often than big ones
Missing outlet covers, handrails, peeling paint, inoperable windows, and smoke detector placement account for a large share of failures. Individually trivial, collectively a real repair list on an older Kentucky property.
Where the unit is pre 1978, deteriorating paint carries additional weight because of lead based paint requirements. That one turns a cosmetic item into a regulated one.
Selling out of the cycle
We buy units with failed inspections, abated payments, and open correction notices. None of it has to be fixed first, and we take on the relationship with the housing authority after closing.
Tell us where you are in the cycle and what the last inspection cited. That tells us more about the property than almost anything else you could send.
Five questions. That is the whole thing.
We already know your situation from this page. Change it if it does not fit.
Question 1 of 5
What people ask about this
Can I sell if payments are currently abated?
Yes. The abatement is a program status, not a restriction on conveying the property.
Does the tenant have to move?
Not because of a sale. What happens with the voucher and the tenancy after closing depends on the new owner and the housing authority.
What if I have an open correction notice?
Send it. It tells us exactly what needs doing, which usually helps our number rather than hurting it.
Often it is more than one thing at once
Sell before the next inspection.
No cost, no obligation, and nobody shows up at your door unless you ask them to.