Real estate & medicaid
My ex owns property (3/4), including the house he lives in with his sister. He took out a reverse mortgage years ago. He is now in I’ll health and will probably have to go to a nursing home and be on Medicaid. Can the state take his house/property and what about the reverse mortgage. His sister is not on the reverse mortgage. It’s a mess!
Terry Says
He needs to immediately contact the reverse mortgage company about how long he can remain out of the home before they will take steps to take over the property. The sister will have no rights to remain, especially since she is not a dependent spouse.
Find out the balance owed. If the house is in his name and the property is worth more than the reverse mortgage loan, Medicaid will take the excess towards his care.
They will likely give the family a few months to make good on the balance and keep the home. If you and the sister want to live there together, you could even make a lowball offer when the time comes.
But if not, his sister should immediately look into alternative affordable living options. Contact the Department on Aging, and get her name on a list of rent-subsidized apartments. Once he moves out, the process will start and may move along surprisingly quickly.
