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"on the property, there is a structure son paid rent and stored business property, his not hers. You know a Kubota, dump truck, tools and equipment. State guardian says that those items are on the property and need to be sold for her care."

If son wants the business property, he should take steps to protect it. Provide the guardian with any proof of rental agreement, rent paid, title to truck or tractor, receipts for more expensive equipment, etc.

Hopefully he has proof of expenses and depreciation with his tax records.

Then arrange to relocate it by the end of the current rental period.
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I’d be way more concerned about mortgage as a priority over Medicaid.
This is a traditional mortgage that has balance due & then there’s some sort of other lending on the home, like a HELOC or other home equity LOC, right? & property is under water / negative equity for its value to secured lending (mortgage / HELOC) attached to property, right?
& it is NOT a reverse mortgage, right?
My answer is based on traditional mortgage HELOC lending:
In order for you to sell the property you are going to have to have releases (eg Release of Deed of Trust) done on all secured lending on property. Most of the time, house sells for over debt owed, somthe Title Co has all the info in detail, and at the Act of Sale those 2 items get paid off to the old mortgage holder(s) so new clear title issued to buyers.

But if it’s underwater that’s not happening. You, imo, need to contact your lenders BEFORE you put house on the market to see just what kind of work around the lender will be ok with. Likely 3 or 4 choices:
- you cover the difference owed in cash to pay off mortgage(s)
- arrange with lenders for a short sale
- walk away on home via deed-in-lieu of foreclosure.
- lender in position #1 does a foreclosure
Just what’s best depends on your finances and what your lenders want to do. If these are 2 different lenders, 2 different banks, each has to allow the same things to happen. Some lenders have absolutely no interest in doing work arounds; they’d rather just have it foreclose and have existing companies they work with that deal with getting you out & dealing with foreclosed property. Yeah it’s harsh.
Really I’d suggest that you find out ahead of ever putting the place on the market or getting a Realtor to list it, to find out exactly what your lenders are going to want. Mortgages and HELOC / LOC are secured lending, they call the shots.

If your on Medicaid and know there’s going to be Medicaid issues as your state allows for liens to be placed proactively before death, well, personally I wouldn’t worry about it. Medicaid is unsecured. Only if you actually make $ from the sale does it affect Medicaid as the $ proceeds from the sale become income and then assets of yours which likely will change your eligibility for Medicaid as Medicaid is all all about being low income. Your home is underwater, your not likely to make $.

really if your underwater, clearly speak with your lenders before you do anything. Your gonna be real upset if you start getting your house spruced up for sale and find out the bank wants it go foreclosure route.
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Stacy0122 Jan 10, 2021
Ok, so state took guardianship and wants to "sell" the house for care. POA and "competent adult" Nov 19 refinanced to put a roof on, never did. House is non livable, condemned, it would take around $65k to make it livable. So, there is a mortgage for around $100k and a LOC secured property for $50k defaulted $400 a month 0 interest payment plan.

So, on the property, there is a structure son paid rent and stored business property, his not hers. You know a Kubota, dump truck, tools and equipment. State guardian says that those items are on the property and need to be sold for her care.

So replacement costs are more than the value of the property and less than secured credit.

Yes, there is a meeting with a lawyer but are there specific questions to ask? Also, what if the value is less than what is owed.
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POA works with lender for arm's length short sale at market value?

Property taxes paid, Mortgage is next, LOC is paid next if any.

I don't think the taxable value matters.

Spouse or other residents may try to keep up the bills and stay in the property, but shouldn't expect to see any equity after Medicaid lien.
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