Section 8 has to do with the tenant. It would be illegal if the tenant no longer lived in the property. But the Section 8 payments do not have anything to do with owner’s problems, such as foreclosure, only with the rental by one of their clients.
My question is is it illegal to still receive a check from a section 8 property that is currently going through foreclosure? The house was appraised to high and sold under false pretenses,therefore, the section 8 check was not enough to cover the mortgage payments. Now the property is in foreclosure, but section 8 is still sending the checks, while the property is in foreclosure. Is it illegal to collect the checks still, while the property is in foreclosure?