Selling house when loved one goes in nursing home

[Matt S.]

What is the name of your state (only U.S. law)? Missouri: Mother in law is getting ready to go in a nursing home, whether she knows it or not. She has early dementia. she is about 72. Her husband is already in one, and she is paying about $275 a mo. for that, with Medicaid paying rest. She owes a second mortgage on her house of approx 80K and it is in deplorable conditions because of un-housbroken dogs. The minute she leaves the house we won't be able to keep up with the house payment or many of the other bills so we are concerned about foreclosure. She has other bills that she can't or isn't paying, hence the timeliness of the situation. My wife's brother has some vague intention of buying the house and it's 1 or 2 acres. He really just wants the property, he doesn't want to live in the house. I know he would have to pay a fair price to satisfy the state. I talked to a Missouri Senior services worker who said there will be a lien put on the house to repay them for his and /or her nursing home care when they die. Can we even sell it with this lien on it? What are all of our options besides letting it go to auction or giving it ump to the bank for what is owed on it? Will the bank let us slide while we prepare it for sale? We don't have the money to fix it up. We would be happy to just have it be an even wash, no gain or loss. But shouldn't a real estate professional assess what it could bring and should a survey be done-- the neighbor to one side is a relative, and this is rural, highway frontage property that has been in the family for years. Help please! Matt.

 

[Ohiogal]

What is the name of your state (only U.S. law)? Missouri: Mother in law is getting ready to go in a nursing home, whether she knows it or not. She has early dementia. she is about 72. Her husband is already in one, and she is paying about $275 a mo. for that, with Medicaid paying rest. She owes a second mortgage on her house of approx 80K and it is in deplorable conditions because of un-housbroken dogs. The minute she leaves the house we won't be able to keep up with the house payment or many of the other bills so we are concerned about foreclosure. She has other bills that she can't or isn't paying, hence the timeliness of the situation. My wife's brother has some vague intention of buying the house and it's 1 or 2 acres. He really just wants the property, he doesn't want to live in the house. I know he would have to pay a fair price to satisfy the state. I talked to a Missouri Senior services worker who said there will be a lien put on the house to repay them for his and /or her nursing home care when they die. Can we even sell it with this lien on it? What are all of our options besides letting it go to auction or giving it ump to the bank for what is owed on it? Will the bank let us slide while we prepare it for sale? We don't have the money to fix it up. We would be happy to just have it be an even wash, no gain or loss. But shouldn't a real estate professional assess what it could bring and should a survey be done-- the neighbor to one side is a relative, and this is rural, highway frontage property that has been in the family for years. Help please! Matt.

So how do you think YOU or anyone but those on the deed can sell it?

 

[Matt S.]

So how do you think YOU or anyone but those on the deed can sell it?

My wife has durable power of attorney for her mom, for all affairs, health care decisions, etc. The document is from years ago. We just haven't had the need to whip it out yet, and/or we may need to get her doctor to say she's incompetent to enforce it. So, knowing that we have a right to do anything, my question is more geared to options: short sale, work out deal with bank, etc.,

 

[FlyingRon]

As you realized, asset disposal of those receiving (or likely to receive) medicaid services is tricky. Even though you may have an inside buyer, I might recommend help from an attorney (or perhaps a real estate agent). Yes you will need to fix the FMV of the house to avoid problems. The medicaid liens as well as the mortgages mean that these must be satisfied from the sale (unless the buyer is legally allowed to take them on and is willing to do so). We have no idea of the value of the house compared to the encumbrances. It would be hard to make any recommendation. If the brother can pay enough to pay off the mortgages and the existing medicaid lien and any remaining proceeds are used in a way that supports the care of the owners, then that is an option.