I’ll try to be as short but as detailed as possible. My wife and I had to put her Elderly Aunt into a nursing home due to deteriorating health and needing 24/7 care. She/we could not afford private care and no family member was willing to assist with 24/7 care. She has been approved for Medicaid - but the home still gets her SSI and little pension she gets. So that means no more income other than $35 a month she is allowed to have. We live in PA. We have kept all her bills up to date including Mortgage/ utilities. Long story short her husband kept refinancing and left her with a large mortgage- more than what the home is worth now. Like 30 K more than house is worth or would ever sell for. We have a friend interested in buying it, but not for what she owes. My wife is POA. She is going in for surgery and could possibly not make it. I don’t know what options are other than sell it but don’t want to jeopardize Medicaid coverage, we are willing to surrender the money to the Nursing Home but what about the mortgage company how would that work? She has very little assets other than the house. Which isn’t much considering what is owed on it? Any help or suggestions are greatly appreciated. She doesn’t have money to get an Elder lawyer. Thank you
Mr. Sad
I would turn nothing off until I talked to the lawyer. IMO, you give the house to the Mortgage Company. Foreclosing can take years. In the meatime, put the heat to 55 so the pipes don't freeze. Unplug the fridge and other appliances. Set up a lamp in the living area to come on at dark and go off at 11pm. Pay nothing out of pocket because you will not get it back.
At this point the house is an exempt asset to Medicaid. Once Aunt passes, it becomes an asset that can be recovered from. Keep all records concerning what happens to the house. You may get a recovery letter asking if there are any assets. You can then show them what happened to the house. At no time are you responsible to pay Aunts way.
Depending on a forum of strangers for something this complex is NOT a good thing. You need qualified expert. Do take all details to an elder law attorney.
My own thinking is to just let this home go to the bank. To be honest, sale to ANYONE is going to mean having to deal with the accusations that aunt now has income and no longer qualifies for care.
There will likely be a big to-do between Medicaid recovery and the banks. It will be one solid mess. I would let the thing go. Sounds like her hubby already squeezed it like a sponge.
As to whomever wants the home? Let them wait for the auction sale after bank repossession.
ALL OF THAT SAID, I--and most here--are lay people with some life experience but mostly not a CLUE about anything this complex.
JUST the RIGHT ANSWER may be out there right now.
A CPA or an Elder Law Attorney will have it if it exists. I encourage you to find out and then let US know because anything we learn here is learned by those who write here.
Good luck.
I too am thinking foreclosure.
"We have a friend interested in buying it..." This friend is looking for a deal. Don't consider it for a minute.
Please have your wife speak to the social worker to get guidance on NOT messing up medicaid.
There will be no money for auntie from this house and you guys should stop paying anything from your own pocket, you will never recoup any of it.