If Mom goes into a retirement home we are basically homeless as my credit went bad due to medical illness and expenses. What can we do? - AgingCare.com

If Mom goes into a retirement home we are basically homeless as my credit went bad due to medical illness and expenses. What can we do?

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We are Georgia residents, I am disabled with wife caretaker. We live with and take care of 86 yo Mom. She is going deeper into dementia. Wife and I are her caretakers as he also cares for me. My Social Security is not enough to support us nor is the small check from private disability which runs out May 2016. She has 3K retirement from USPO and full Fed insurance. If she has to sell home to go into center we become homeless as we can't wait a year or two for section 8 housing or anything. Must she sell the home to go in even with her income. Also she has a lot of debt to pay off as well. Would she be better off to bankrupt? Her main consideration as well as ours is that we end up homeless and on the streets which, as you can understand, is something we wish to avoid.
Does anyone have any information?
My wife read somewhere that in Georgia if you are disabled and living with your parent you can not be turned out of the home. Does anyone have info on this? Are there any laws that could be helpful at all? Thank you all in advance, and please help if you can. Tom. Oh, and if this helps, I am 64 and have draw SS Disability.

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Thank you for that, Pam. In truth we second mortgaged our own home in 2005 to pay off her over reaches. Didn't mind, as she had helped us some. But please be careful before you judge someone. And yes, we love our westies very much. Just want all of us to be alright.
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Tom, you have an awful lot on your plate and two lovely (and expensive, purebred) dogs on your lap. I think you will be just fine if you take some antidepressants. Sorry if I thought you were sponging off mom and expecting too much of your wife. Good luck.
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Sorry but this know nothing person walks in and convicts us as guilty of things we have never done. No trial nor jury, just good old Pam Stegman and her know all tell all mind and practices. Wrong place, Pam, wrong time, wrong people.
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Wow,
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To Pam Stegman, it is plain to see that you goodie goodies with cranial rectitus jump to your own conclusions so rapidly you can't see the truth. The truth is we gave to my Mom and kept her fed along with other things. My my, glad you aren't the only judge in life.
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Sunny - MERP / Medicaid asset is run uniquely in each state as it's an aspect of Medicaid and Medicaid is managed or administered by each state but within an overall federal guideline. Under MERP (which is required to be done by the fed's for all states), the exempt asset can have either a lien or a claim placed on the property from the time that the recipient signs off on the Medicaid application. However the asset remains exempt until the Medicaid person dies and from that point on the property becomes non-exempt with the claim or lien attached to it. It has to be "lifted" or removed by a state provided document of the specific release for the property (by name and parcel # usually) from MERP before the house can legally transfer or sell to another. Unless there is something like a Lady Bird deed on the house or a LIfe Estate, if your state allows for those to be done under Medicaid. If your state does the lien approach, then it's there from the get go. If your state does a claim, then how probate runs is going to be a huge factor in what will happen. Like for TX, MERP is a level of class probate state and MERP is class 7 so all the other classes have to be paid first & foremost so MERP is low for those who actually do probate in TX. Problem is that many families don't do probate and also just ignore dealing with MERP. They do not file the available exemptions, exclusions or hardships allowed and then MERP's claim or lien basically can occur by default.

No, you don't get kicked out of the house, but the day will come when you need to do something with the property, like sell it or use it as equity or get a loan to do home repairs on it and you cannot as there is a claim or lien against it and you cannot show true legal ownership. As a side story to this, we went through Hurricane Katrina and I did some outreach after the storm, what happened again & again was that family who had been living in their house for years & years never legally transferred the property to their name; it was still in their old auntie's name or grandpa's name and just passed down generationally. Whomever was there paid the taxes, kept up the house and often got insurance policies. Now when they went to get disaster recovery aid, they didn't qualify as they didn't legally own the home; the insurance company considered the policy void as they were not legally the owner so no settlement although they might return the $ paid for the policy; all the programs like SBA, Road Home, Make it Right had $$ but you had to show true legal ownership and so many just could not. This is one of the big reasons why there are blocks after blocks of empty blighted land in SE Louisiana and the MS coast. I was just flabbergasted that people just would not do probate or deeds done to ensure true legal ownership.

If later on, someone is buying the house & doing this via a mortgage, they will need title insurance. Title companies are very good on finding out if there could be MERP out there and if there is either you have to do whatever to get the release from MERP (like sign off all proceeds of the sale to MERP) or be able to put up an indemnity $$ to cover the title insurance before you can ever sell the house. If you didn't disclose the MERP existed, the buyers can sue due to fraudulent real estate listing too. Realtors very not happy. Bad situation all around.

You don't want to ignore MERP. Just how MERP's done and how easy or difficult all this is very much dependent on your state laws for probate, property, etc and also your own ability to be able to document in a timely manner whatever is needed to present to MERP the exemptions, exclusions, etc and then do probate or muniment to legally transfer the property. You probably just don't want to find yourself a few years from now in real estate limbo, living in and paying on a property that you do not own that has a lien on it that you cannot afford to ever pay off and you missed the opportunity to file the exemptions needed to get the MERP release.
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I've only known of one person who got Section 8 housing and it didn't take "year or two". I'd get started working on that right away.
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ntw1950, you mentioned that your credit is bad.... what about your wife's credit? If her credit is good, maybe the both of you could look for a homeowner who has a basement apartment or in-law suite they would rent out to you.
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I would get legal counsel to see what you are entitled to and what remedies you may have as an adult child who lived in the home for two years prior to mother needing services. If mom intends to return home if possible, who is there to kick you out? There is no Medicaid asset recovery immediately, right?
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What I mean is people try to play it both ways. They want to collect full disability and then get benefits/keep the house as a caregiver. Medicaid will not allow benefits for both, they contradict each other. It is so sad to see children sponging off their parents and then expect it to go on forever.
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