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The bank and I own my home. I filed bankruptcy in 2015 but lived in the homestead at the time. I did not assume the mortgage at the advise of my lawyer. I have mild cognitive disorder. My son has :POA and i have a revocable trust. Please help. If I have to receive health care in the future will he loose the house?

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So the mortgage was excluded from your bankruptcy? Right? As it was current cause your son was paying the mortgage? Right? and you are feeling that you will sometime in the near future will need to go into a facility and need to apply to Medicaid to pay.... That's it, right?

I'm assuming the above was /is the situation...To me there are two competing issues: first - The mortgage co will likely need to have the mortgage cancelled in order for you to sell to anybody, which means outstanding mortgage is paid in full from the sale so that you have a Release of the Deed of Trust done at the sale. Sonny gets no credit for his payments, the mortgage is on your name so it's been credited to you. Mortgage co doesn't care who pays the monthly note, only that it gets paid. Sonny will need to either qualify for a new mortgage or pay in full in cash for the home to get Release done.

Second - But if he buys it from you by just canceling out the mortgage balance, the buyout $ on the sale / morgage cancellation well that poses an issue for your future medicaid eligibility as its a gifting of $ from you to him of whatever the fair market value is on the house if it was to be sold on open market (instead of from you to him) This could be a lot of $$$. Sonny probably gets no benefit for paying your mortgage all these past 5 years as far as Medicaid is concerned as they tend to view whatever kids do for their folks (pay taxes, mortgage, etc) as done out of a sense of familial duty with no anticipation of reinbursement unless there is some sort of preexisting legal agreement or perhaps a promissory note.

This is all pretty complicated unless you have 5 full years before you ever need to apply for Medicaid. Or Sonny has a lot of $ so none of this (mortgage, Medicaid penalty, etc) matters. I'd suggest you contact the mortgage co to get an idea of the payoff; mortgage co do this all the time and can get you the $ amt probably within a few days. Then you & sonny take this and all old legal and payment history and see an elder law atty. I'd get one NAELA certified as this is complex.
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