ssi resource and overpayment

[EddyEdward]

California.

I got approved back in 2010. sent forms for financial evaluation got back pay
I was carrying a note on property and still am it has a balance of $26,000. ssi made adjustment and
paid up the difference to the Max allowed $850 something. I get a letter now saying I have an overpayment $4850.
Can they count the note as a resource?. I'm getting $535 payment each month and this is my only income .ssi sent another
letter demanding me to pay back. Appeal or suck it up.

 

[adjusterjack]

SSI is based on income so I'm guessing the SSA is treating it as income.

Might be considered "unearned income."

See:

http://www.ssa.gov/ssi/text-income-ussi.htm

I wouldn't suck it up just yet.

I suggest you call or visit your local SSA office and review your account and have them show you the written rules specifically for seller financing.

There may even be an appeal process you can go through. If there is, it doesn't cost you anything.

 

[Isis1]

always appeal, then ask for a waiver.

if that doesn't work, you can set your own payment plan.

 

[Onderzoek]

California.

I got approved back in 2010. sent forms for financial evaluation got back pay
I was carrying a note on property and still am it has a balance of $26,000. ssi made adjustment and
paid up the difference to the Max allowed $850 something. I get a letter now saying I have an overpayment $4850.
Can they count the note as a resource?. I'm getting $535 payment each month and this is my only income .ssi sent another
letter demanding me to pay back. Appeal or suck it up.

You probably should have been denied for excess resources back in 2010. The note is a resource that you can sell, probably way under $26,000 but probably over $2000. Heck, I would probably buy it for $3000 (just kidding, but there is someone who would)
https://secure.ssa.gov/apps10/poms.nsf/lnx/0501140300

Whoever adjudicated your claim made an error, so you actually have a good case for waiver of repayment but not for reinstatement while you own the note. And if you are thinking about giving it away to a family member, there is also a three year penalty period for resource transfers at less than fair market value.
https://secure.ssa.gov/apps10/poms.nsf/lnx/0501150001

Request the waiver (complete the form SSA 632), keep a copy, get a receipt or other evidence that it was submitted, and appeal if the waiver is denied. Although owning the note may also indicate ability to repay, so it might get denied.

You might want to look into how much you could really get for this note if you sold it to a broker. At least then you know the real value.

Let's say the discounted value is half. So you sell it, live on that money for awhile and when under the $2000 limit, reapply for SSI. Unfortunately, you will probably have to go through the initial process all over again, including a finding of disability.

Or live on the proceeds of the note until it is paid up and then apply for SSI again. At least then, you can try to work without affecting SSI and maybe you'll find that you can.

Whatever you decide, the overpayment will not go away even if they stop sending bills.