Follow
Share
First, I would not ask a person who maybe ready to enter any kind of care to co-sign for me. If the one buying the house does not pay the mortgage, then the co-signer is responsible for the debt. I would also wonder why a mortgage company would allow it.

Medicaid does not allow a person to have more than one property. Recipient keeps the one they have actually lived in and the rest have to be sold. If the co-signer is not on the deed as an owner, I don't see a problem. I just don't think itsright to ask it of someone who can't even pay for their care. And if they can't afford care then I don't see where a Mortgage company would allow them to co-sign. If they are just living on their SS and maybe pension, they can't afford to make a payment if they have to.

IMO, if the person buying a house needs a co-signer then they should not be buying a house. Means your credit is not good enough or you do not have enough money down.
Helpful Answer (2)
Reply to JoAnn29
Report

I agree that it makes no good sense that a person entering a facility would be someone to co-sign a loan. I also agree I cannot imagine a mortgage company would allow it. Medicaid, in most states, has a 5-yr "look back" period on the financial portion of the application, so this would probably be "seen".

You never get done spending money when you own a house. A lot of times things come up that are a surprise and not budgeted for. My son just had an unexpected $3K plumbing bill to replace rusting and leaking metal pipes in his old home when things started to back up into his lower level. Even though he as a home warranty contract, they are giving him a hard time reimbursing him, and taking a long time to do it.
Helpful Answer (0)
Reply to Geaton777
Report
Kathbru58 Sep 23, 2024
Not sure but if you don’t get Medicaid or applied for it, you can do what you want with your home and cars
(0)
Report
This is a post from July and OP never returned.

Kathy, thats true but if itsceven thought a person may need Medicaid, that person should mot be gifting or co-signing.
Helpful Answer (0)
Reply to JoAnn29
Report

This is a question for Medicaid itself, so give them a call.
I know that certainly you CAN own a home and a car. There will be clawback on same after your passing to get some medicaid recovery.

As to the co-signing, it would matter if you are on the deed of this home in some way, and recently Igloo posited here that often you ARE added to home ownership paperwork in some way upon co-signing a loan for real property. So it is important to have an attorney check all paperwork to make certain you were added only to paperwork for person responsible to pay loan if principal defaults.

When you need Medicaid--when you can qualify--generally you have no funds left. Most often, no lender can collect your SS so that money would go to the nursing home and Medicaid would supplement the cost. Were the principal on the home loan to default, and you were to die with a home, and the mortgage company had a judgement on you, they couldn't collect in your lifetime, but after your death there would be a race to your home to grab it. That's not your problem and Medicaid would win the scramble.

See an elder law attorney about this question if Medicaid cannot assist you in answering. You don't want to depend upon strangers (that's me) on a Forum for important legal and/or financial advice. Best of luck.
Helpful Answer (0)
Reply to AlvaDeer
Report

Ask a Question
Subscribe to
Our Newsletter