Medical Lien on a Contract for Deed

[plbaxter6803]

What is the name of your state (only U.S. law)? Minnesota

If a parent and a child were to enter into a Contract for Deed for the child to purchase the parent's home, can a medical lien be placed on the property? Would the lien apply to the full purchase price, or just the remaining balance?

 

[LdiJ]

What is the name of your state (only U.S. law)? Minnesota

If a parent and a child were to enter into a Contract for Deed for the child to purchase the parent's home, can a medical lien be placed on the property? Would the lien apply to the full purchase price, or just the remaining balance?

It would depend on who shows as the deed holder in the county records.

 

[plbaxter6803]

It would depend on who shows as the deed holder in the county records.

The parent would still hold the title to the property, while the Contract for Deed would be recorded with the County.

 

[Zigner]

Oh, I get it now...you're trying to defraud the creditor by hiding assets. Not going to work.

 

[plbaxter6803]

Oh, I get it now...you're trying to defraud the creditor by hiding assets. Not going to work.

No, I'm not trying to hide anything. I'm trying understand how a contract for deed would work if a situation like that were to occur and what the risks would be for the buyer. I understand how a Life Estate works with medical liens, but not how it would work with a contract for deed. Please don't try to read more into the question than what it is.

 

[Zigner]

Is this just a matter of personal education, or do you actually have a "situation" you are trying to deal with?

 

[sandyclaus]

No, I'm not trying to hide anything. I'm trying understand how a contract for deed would work if a situation like that were to occur and what the risks would be for the buyer. I understand how a Life Estate works with medical liens, but not how it would work with a contract for deed. Please don't try to read more into the question than what it is.

Oh please If you are going to try to get an answer to fit your situation, you'd want to provide enough detail so we can give you an appropriate response. Otherwise, you're just trying to fish for the answer you want by feeding us a worm here and there. We don't play that game here. And most of us here have been around the block a few times, enough to know how to read between the lines.

It sounds EXACTLY like you are trying to figure out how to defraud a creditor who either has, or is about to place, a medical lien on your house. Personally, I'm thinking that a contract for deed may be treated like an attempted fraudulent conveyance of the property to a family member to try to keep it from being foreclosed upon. I could be wrong, and often am, but others here can either back me up or correct my understanding.

 

[LdiJ]

Oh please If you are going to try to get an answer to fit your situation, you'd want to provide enough detail so we can give you an appropriate response. Otherwise, you're just trying to fish for the answer you want by feeding us a worm here and there. We don't play that game here. And most of us here have been around the block a few times, enough to know how to read between the lines.

It sounds EXACTLY like you are trying to figure out how to defraud a creditor who either has, or is about to place, a medical lien on your house. Personally, I'm thinking that a contract for deed may be treated like an attempted fraudulent conveyance of the property to a family member to try to keep it from being foreclosed upon. I could be wrong, and often am, but others here can either back me up or correct my understanding.

Well..it is also possible that she really does wish to buy this home from her parents, that her parents don't want to be removed from the deed until its paid off, and she is worried that any money she puts into it may be wasted if either of her parents end up with big medical bills.

 

[tranquility]

It depends. Was the contract recorded with the county registrar?

 

[FarmerJ]

EG parent owns home free and clear , adult child buys parents home on a contract for deed, contract is recorded , parent now has a vendors interest in the property so if adult child has bills they do not pay the parents vendor interest has never gone away the parent basically has first mortgage. Other way around, elderly parent has sold the free and clear family home, at a fair market price to a adult child on a contract for deed, Aged parent needs to go to a senior apt where theres rent subsidy, the monthly payment they get will be part of monthly income. Aged parent needs to go to nursing home , contract for deed payments to them are still income and as long as the price of the home was a fair market price , NO One will interfere no one in our state can take away the vendee / contract for deed buyers interest due to medicare issues ,the payments made every month would end up just like a private pension or any other source of income, it would be used to help pay the nursing home bills. (IF the price is too low that it raises red flags then good odds it will be caught) Use the services of a attorney to set up the CD , it will be well worth it.

 

[tranquility]

Well, except for the fact the state requires filing a regestration.