My mom recently had a stroke and needed to be put in an assisted living facility. She still owns her home with a mortgage payment. I am looking into putting her into a reverse mortgage situation. She currently owes the assisted living facility $12530.00. She has not other assets of money and makes too much money for assistance from the state of Maryland. Do you think this is a good idea? Also, the house is currently up for sale.
Regarding taking over a mortgage, if a mortgage company gets wind that the home owner herself isn't making the payments, the mortgage could become due in full. One would need to read over the mortgage papers to see if such clauses are in force. If that happens, the person who is taking over the mortgage would need to apply for a mortgage him/herself.
DNHnana, be sure that the house is listed at fair market value, otherwise Medicaid might see a low price as a red flag.
I know all of this is so complex.... wish it was much simpler as you have enough on your plate.
Once again this should have been addressed by a good estate planner and attorney. I made these plans when I was in my 50's, I worked in a high-risk job situation and knew that I could be killed or injured and unable to work. I still live in my home but because of good planning we have all situation covered. I am in my early 70's and realized that something could happen to me anytime. My wife is in her mid 60's and she is protected too. We have addressed all situation so there will be no issue for my daughter.
I'd bet there are also bills related to her stroke too. My suggestion is for you to contact the Realtor today and tell them mom is a "very motivated seller" and get the house sold ASAP. Mortgage gets paid off at closing and hopefully there is also enough $$ to pay off AL bill and to pay to get with an elder atty to update all moms legal and determine how to get mom eligible for Medicaid. Eligibility could mean she does a medicaid compliant special needs trust for extra $ from house sale $ &/or Miller trust for income overage if a Miller can work for her situation (so can be on Medicaid).
Please remember all $$ must clearly show that it was spent on moms care or moms needs. You probably can't easily reinburse yourself for things you paid for on the house, her care, etc as medicaid tends to assume family just pays for things out of a sense of familial duty without reinbursement and will consider any $ from mom to you to be gifting and will cause a transfer penalty issue for her Medicaid eligibility. So no $$ to you.
If your mom is on the young side it may be an estate atty.who does SNT rather than one who does elder law. You are her DPOA, MPOA already, right? If not and the stroke was intense, there could be guardianship needed to be done as well.
House needs to get sold as mortgage holder will foreclosure if not current. You dont want mom to loose any equity she has in the house. Get it sold ASAP.
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