Mother in final stages of dementia and was moved from her home to a skilled nursing facility.

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RM is a secured creditor. Medicaid unsecured creditor.
RM will get $ first & more than likely after mortgage, fees, etc paid, there won’t be very much $ left that would become proceeds from the sale. Unless the property has tremendously risen in value.

GmaKooKoo, has the move to a NH just happened? And gran just applied for Medicaid. So all is new & in a flux? Pls, pls realize that Medicaid requires gran to do a copay or share of cost of her monthly income (SS, pension) to the NH. She will have no funds to pay property taxes, insurance, utilities, maintenance. If you or family pay these, you probably need to consider it paid under a sense of family duty with no anticipation of being repaid. If there should be $ left after RM paid off, it will be considered grans $ & she cannot easily give it to anyone under Medicaid rules. You’d need to have some sort of promissory note or memo of understanding done way in advance to try to get around this. Try to find out what RM payoff is; and what the property costs run. Often family cannot afford the energy, $ & time to deal with the property & so let the RM call the mortgage in; it gets foreclosed. Hard choices.
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I agree with Barb above, read the conditions of the Reverse Mortgages. Some RM's could say that the person who signed for loan can be in a nursing home for one year, with hopes that the person could return back to the house [apparently that wouldn't be in your Mom's case]. Thus one year and one day, the Reverse Mortgage could ask for the loan to be paid back, plus the interest and fees.

Now, it this is Medicaid [which is different from Medicare] putting a lien on the house, I don't know who gets to stand in line first for the house equity, the Reverse Mortgage people or Medicaid. You would need to ask Medicaid if that is who is paying for your Mother's care.
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Read the conditions of the RM. Most stipulate that the elder must be residing in the home.

I assume you mean "claimed" by the RM company. If you are talking about Medicaid recovery (MERP) that's a different issue.
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