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Aunt going into Nursing home on medicaid. I want her house.

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Kmoran81

Junior Member
What is the name of your state (only U.S. law)? NY

My aunt is fairly close to going into a nursing home. She has some money in the bank (approx $20k) and her home is worth about $80k and is paid off. I am interested in buying the house when she does finally go to the nursing home but Im unable to qualify for a mortgage.

Can she hold the mortgage on the home for me?

What happens when she runs out of money and medicaid tries to take the house?

Is my promissory note with my aunt just transferred to medicaid so now medicaid holds my mortgage? Or can they demand payment in full immediately?

Thanks
 


rowz

Member
I am going to take a stab at this, though I am not conversant with the letter of Medicaid rules.

Um.....I would like to buy your Aunts house and I can qualify for a mortgage. Now WHY would Medicade let YOU owe them when I [or any other qualified Buyer] will give them cash?? They are not in the business of holding mortgages. Besides if you cannot qualify for a mortgage how are you going to pay a note, the taxes, insurance, sewer and water, maintenance and etc.

There is a solution, though. :D

Keep Aunty OUT of the nursing home and you move in with her. You also take care of all her daily needs, meaning food, health care, bathing & bathroom, Dr. visits, etc......you know, just what they would do in the nursing home besides your regular job. Do not forget to get help for those hours that you are out of the house working and recreating. :eek:

Talk to an Elder Law attorney who will interview your Aunty and see if that is some sort of an arrangement that she would like to enter into with you and the lawyer feels that you would be an appropriate responsible party.

what about the rest of the members of the family?
 

Kmoran81

Junior Member
You missed the question here...First, Im asking that if I sign a note with her previous to her entering the nursing home, is that note still valid when she actually goes in and just gets transferred to medicaid? Or does the medicaid lien automatically make my contract with her null and void?

Second...Im very aware of what the costs of owning a home are. Ive been a real estate investor for 4 years and currently own 6 properties. I currently have 2 mortgages (1 refi, 1 primary) with BofA and they will not give me a 3rd because my stated income isnt high enough (not to mention even if it was, my aunt is willing to give me the loan at 3% where as a bank would be around 6.5%)

Third...well honestly im not looking for moral advice on how to run my family, im looking for legal advice on how to keep the home. I am in no way trying to commit medicaid fraud, I am very willing to pay the appraised value of the home to her or medicaid (whichever the case may be.) Im just looking for a way to finance it for roughly 3 years until my refi is paid off, then ill go back to the bank.
 

Kiawah

Senior Member
Not a Medicaid expert by any means, but I've just gone through getting my MIL into a nursing home and covered.

I suspect that they won't approve your aunt for coverage, because her asset level is too high. They may force her to liquidate that loan.

We had to sell off MIL assets and policies, and go through a 'spend down' period until her assets were down, and remaining income stream below the state defined thresholds. We paid the nursing home full rate until reaching the threshold levels, then state coverage kicked in.

If she didn't start years ago in prepping for this situation, it's too late (3 and 5 year lookback periods). Submitting all of the required documentation details, and explaining every expenditure can be brutal. Good records are a must, and I had scanned all documents on her behalf for years, having them in softcopy and readily available to print out for them.


Good luck.
 
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