My mother is going into a Nursing Home on Medicaid. She has a Home Equity Line of Credit. However, she deeded the house to me over 5 years ago. Can this be handled like a credit card with a letter stating she has no money or assets to pay it?
I'm guessing that title work wasn't obtained when the title to the property was transferred to you? Unless the HELOC was discharged, it's still a lien against the property and must be paid.
If you can't pay it, contact the lender ASAP before it's foreclosed and the foreclosure affects your credit rating, and/or your funds. If your mother can't pay it, do the same things but provide information on her Medicaid and nursing home status.
The issue really depends on how the title transfer was handled, and whether or not the property was still encumbered by the HELOC when it was transferred.
Like any other home loan, a home equity line of credit is almost certainly recorded against the title of the property. The registered owner signs paperwork to allow this when the loan is acquired. So the lender must be paid before title can be transferred and they are given the right to pursue foreclosure and sale if not paid.
Check the original loan paperwork. Did you sign anything when the loan was acquired?
Check your title transfer paperwork. A title company should have made sure any encumbrances were cleared when they did the transfer. If she only did a quit claim, she could only sign over whatever her claim was to the property. So quit claims can get messy.
As always, if you want to rely on legal advice, consult an appropriate lawyer. Show them any loan and title paperwork that you have.
If you can't pay it, contact the lender ASAP before it's foreclosed and the foreclosure affects your credit rating, and/or your funds. If your mother can't pay it, do the same things but provide information on her Medicaid and nursing home status.
The issue really depends on how the title transfer was handled, and whether or not the property was still encumbered by the HELOC when it was transferred.
How did she get a HELOC if her name isn't on the deed?
Check the original loan paperwork. Did you sign anything when the loan was acquired?
Check your title transfer paperwork. A title company should have made sure any encumbrances were cleared when they did the transfer. If she only did a quit claim, she could only sign over whatever her claim was to the property. So quit claims can get messy.
As always, if you want to rely on legal advice, consult an appropriate lawyer. Show them any loan and title paperwork that you have.