Received a check for $5K from Fannie May re a foreclosed condo- keep it?

I would think it would have to be turned over, or endorsed over, to Medicaid.

I'm curious how someone got $5K for a foreclosed condo though; typically the bid at sheriff's sale is for the amount of the debt plus attorney costs with nothing to compensate the former mortgagor...at least to the best of my knowledge.

Perhaps this was a bonus to leave the condo in good condition; I do know that some mortgagees offer incentive bonuses to leave early before the redemption period runs.

I would get in touch either with your Medicaid contact or the head of finance at the AL facility and make arrangements to endorse the check to either, depending on which they advise you to do.

Notwithstanding any Medicaid, rules, it just isn't ethical to keep that kind of money while getting Medicaid.

I would think if she wanted she could take and pay a relive or friend for the help on her move with the money if she can't keep it herself or she might be able to give it in a living will to a loved one or put
It to her funeral plans if she had none a lawer might have some except uses for it before the bal gose to the state or even per paying federal and state taxes as the old saying gose you are born with taxs you die with axs

I NEVER cash a check I wasn't expecting unless I do some research first. I DO NOT WANT TO PAY IT BACK! yech.

I would go tothe AL office who deals with Medicaid payments. If they can't help than to medicaid. It may go to pay medicaid. They may have a lean on the property.

You could check with an eldercare attorney and see about putting it in a Miller trust, I think. You could put it into a funeral/burial account if there is not one already. But every state has different regs, definitely find someone knowledgeable about them. Some attorney or estate planner websites make it obvious they know Medicaid and I would pick one who does that.

I believe it would illegal to keep it.

Check it out - You MAY be able to receive a one-time amount like that as long as you spend it before the end of the month on approved expenses. There is a long list of acceptable expenses that could easily go through $5k (dental care, hearing aides, clothing, furniture ...large screen TV!....etc). I believe you must spend the amount down by the end of the month, so pre-plan & start on the first.
A special needs trust may be another option, as would paying debts (as one person mentioned -- the person who cleaned the condo that allowed the "cash for keys" deal to happen).

Horserider.....big screen TV.....really?

Special needs trust is set up for people with disabilities. It takes a lawyer to set up and a judge to OK. Takes a year or more.

Consult elderlaw attorney. If already on medicaid doubt very little you can do. Trying to hide cash from them is asking for disaster. You don't want trouble with her benefits.