Medicaid gave us 30 days to put dad's house up for sale which will be Thursday. I really wanted to have a realtor do it. I don't think dad will live long enough for a sale to close (of course that's impossible to know but his prostate cancer has spread to the bladder, rectum, multiple lymph nodes, and now the bones. I could tell the leg is swelling on the side the tumor).Dad's house is at the end of a dead end street so putting a sign in the window won't really sell it which I'm wondering, in this case, if that's the better option so I don't have any buyers going through a mess if he dies before it closes. I do have a care meeting Wed to talk about the cancer so have decided to wait until after that to decide but really, it is what it is already and no one can say if we have time to close a sale.He has a mortgage, utilities etc so I really want it to sell but am confused on how to handle the situation.Any thoughts?
- any other liens on his house? . Like did Dad take out a HELOC, or a second mortgage or could he have had judgements placed onto the house for debts owed? If so, would these PLUS the mortgage be paid off 100% by a sale?
Try to find this info and do a quick $+/- on it….. so will selling the house as it is pay off that mortgage and any other liens attached? If it won’t, then I’d suggest you let the bank foreclosure. You still go ahead and keep that 10/19 Realtor listing going so satisfies Medicaid request, but once mortgage stops being paid, it will be foreclosed on. Once that happens it’s out of your or Dads hands anymore.
- to sell below market value will be an issue as Medicaid wants FMV. But if you get the property appraised by a licensed residential appraiser, that figure can be used as it’s revised FMV.
- to sell below the mortgage balance will require the mortgage holder to allow this. It’s called a short sale and has to have mortgage co approval.
- regarding what caseworker said….. Ideally Medicaid wants NH resident’s house sold & quickly so that the elder will get all this $$$ from house sale so has the ability to private pay for care and will get off of Medicaid. But sometimes a house cannot be sold quickly or easily or can’t be sold for an amount that covers all liens (mortgage, HELOC, judgement’s). If that could be your Dads situation, let it be foreclosed.
I know that seems totally harsh, but if you on your own do not have the $ to pay all the house costs - mortgage, taxes, insurance, yard care, clean or, etc - till it sells, it will be foreclosed on.
Some States will allow for a limited period of time waiver of some of his mo income to be used to pay a mortgage if home has Realtor & MLS listing…. done as it’s viewed as better than house going into foreclosure. Ask!
Are you ok on paying all house costs without being reimbursed? The issue is that as the house is his, when it finally sells - the $ is all his as he is the legal owner - reimbursement to you can be considered “gifting” of his assets to you. Which Medicaid does not allow. You want it in writing from Medicaid that they will allow reimbursement to you of costs paid by you to get that house market ready or pay his mortgage or pay for costs for 20 containers to empty out his home without any gifting issues. Medicaid tends to take the view what families do or spend for their elders is done out of familial responsibility with no expectation of reimbursement.
Find his homeowners insurance and any other property insurance he has. As he has a mortgage, he should to be current on these. If any are about to be renewed with a premium due, and if not paid the mortgage holder can start foreclosure.
Make sure the POA you have allows for full financial that allows for you to buy and sell property. The brokerage group that hold the Realtors license usually will look the POA over to make sure it reads to allow for this. If not, then Dad will have to sign off on paperwork.
The house value will pay off his mortgage and credit cards at least and maybe a couple months of his nursing home.
I plan on stopping mortgage payments in December (January at the latest). The bank can have the house as far as I'm concerned. I figure either it sells quickly or they can have it.
I've given the DPOA to the realtor, recorded it with dad's county, had it approved by his mortgage company and checking account bank so that should all be covered.
Thanks again!
Is he living in the house still?
Is he in a care facility? They will wait for payment.
His Medicaid should be approved, or at least pending. Do not pay any providers until that determination has been made. Actually, YOU don't pay any providers, your father's assets will be used to pay his medical bills.
I'm so sorry you are going through all of this added complication and burden, when you should just be focused 100% on your father.
In this case, I think it would be worth letting a realtor handle of the house sale.
If stuff needs to be cleared out, let the family go through first to save any mementos, then let professional junk haulers and cleaners do the rest of the work.
You've had 30 days, why are you just taking action now? Are you even taking any action? It sounds like you still don't know what to do.
Let a realtor put the house up for sale, and focus your attention on your dad. You will have fulfilled the Medicaid requirements, and even if you don't make the 30 day deadline, Medicaid should still be in pending status, and after the sale of his house is completed, Medicaid can put a lien to get reimbursement. You, the family, are still under no obligation to pay his medical bills.
Help him to die in peace surrounded by family. And worry about the bills later. It sounds like the last thing you need right now in his condition.
The reason we waited until close to the 30 days was because it took that long to get all the stuff out of his house not to mention clean the filth. (actually this original post is over two weeks old now)
I signed a contract with a realtor 10 days ago. It still isn't showing online though so I'm working on figuring out why not!
Thank you!
"[My Dad] is in Indiana and it was actually his Medicaid case worker that told me I had to sign intent to sell and put it up for sale within 30 days of his Medicaid approval."
So...
"Yes — a Medicaid eligibility worker in Indiana can require that non-exempt assets (including home equity over the state limit) be disposed of for you to become eligible, and they can give you a deadline to provide proof that you’ve done so — but they cannot physically force a sale, and you have legal rights (written notice, time to comply, and the right to appeal)."
Source: ChatGPT5
For the OP, If a Right of Return didn’t happen either 1. Her State does not do this; 2. The caseworker is wrong / didn’t fully explain the elder right to retain exempt assets & Right of Return filing; or 3. His home is over the maximum value; or 4. It sounds (sadly) like her Dad is terminal, that his health chart overwhelmingly shows this is his situation and so Medicaid takes the position that he does not have a reasonable expectation to return home.
I hope you took a witness with you to this care conference. You need one if it was with nursing home staff.
The demands about real estate being sold isn't that it must be sold immediately, but that is has to be listed. So list the place. Now in the meantime, you can pay the mortgage and untilities on the place out of your father's income.
Don't let the nursing home intimidate you. They will try at tactics designed to do just this.
My father is Medicaid approved so has no income to pay the mortgage-it goes to the nursing home other than than the $52.
I paid November's mortgage-deposited a check from my checking account into his with a memo on it that it was a loan so I can pay myself back from the home profits. Then wrote a check from his account to the mortgage company. I don't plan on making anymore though. Can't keep doing that. I've been using his credit cards to pay utilities, medical transport, hospital bills etc. It's all a financial mess. Dad made terrible decisions-financial and otherwise.
First...Medicaid can not make you sell the house. If it does not sell in 30 days what do they say will happen? You and a realtor do the best that you can selling it for Fair Market Value.
Second... any sale of any assets have to be at Fair Market Value.
You need a realtor that will help you with this. They will make sure all the paperwork is done correctly.
You need to talk with an actual medicaid professional. He has a right to own a home. However once you sell that home dad will not qualify for medicade until yoj spend all his money on his cost for the facility he is at. Do not spend one dime of the sale of the house for anything but dad.
I am concerned it will take a while because of the appraisal. I did talk to one flipper and he said the price we have to start with was too high. It probably would be good to see how a comparable market analysis comes out and use that amount if lower. Eventually the market will determine fair market value but time's not on our side.
Thank you!
I went back and looked at your bio which is very thorough. It sounds like the house may need to be sold “as is”. In that case your buyer is likely to be a professional house flipper/ investor. No need to give tours.