What do we need to do to sell MIL's home?

Does MIL want to sell?

You might consult a lawyer - just to cover your bases.

The POA my SIL has over her mom only grants SIL the power to carry out her Mom's wishes. So if mom didn't want to sell, you can't sell. (If you had Guardianship, that allows you to make decisions FOR her and then you could sell the house no matter what she wanted).

It depends on how the POA is worded, and might also depend on where you live.

She can sign the contract to sell it or if she wants you can sign the contract as her POA, the money garnered should be used for her care. If you are trying to get around Medicaid, I would forget that plan. Quick claim deeding the house to you won't resolve the fact that Medicaid will get the money back that they have extended in her behalf to date. If this is a new plan for Medicaid in most states there is a 5 year look back, California I believe is 2.5 years.

So, the 2nd mortgage is in her name, and the house title is in her name only? You will need to look at the PoA paperwork...it might have checked boxes indicating you are granted authority to do real estate transactions for her, if she gives you permission or if she is incapable (pls refer to your state's laws regarding PoA -- they can vary a great deal).

I agree with those below who suggested you consult with an attorney who is versed in elder law, estate planning and Medicaid before you do anything with the home. The lawyer can advice you properly on what to do with house sale proceeds. Don't make any assumptions! A 1 hour consult (although not cheap) can save you from a world of financial pain down the road.

Going forward until that time, be very careful how you sign any paperwork as PoA...there is a specific way it should be done/worded to ensure you avoid any personal responsibility (again, see lawyer).

If your MIL is unable to sell the house yourself then.....The POA document has to state that you can sell the house/carry out real estate transactions.

If MIL may need Medicaid within the next 5 years the home will have to sell at Market value. The 2nd mortgage of course will have to be paid off. The proceeds will need to be put aside and only used on Mom. You cannot recoup any out of pocket expenses. Keep meticulous records.

Thank you all for your answers. The POA says we can make all financial and medical decisions for her. She does want to sell the house but then gets upset and changes her mind. Thats where we are running into a problem and running out of time.

Your POA should read "can buy and sell". I was able to put Moms up for sale based on that.

I'm assuming the first and second mortgages are held by separate entities.  Have both been provided with a conformed copy of the DPOA?    And is it in fact a POA that allows you to act at any time, absent a declaration of dementia by qualified physicians?

The key to what you can do is the wording of the POA, whether or not it's contingent on a dementia or other incapacity declaration, and if so whether that exists.

How is title vested?  Is it in your MIL's name alone?    If the DPOA allows you to handle business affairs, including real estate ones, you can sell the house as her proxy.    If you're uncertain, either ask the attorney who prepared it, or contact a realtor and raise the issue as to what they would require for sale; they'll ask the title company they use regularly whether or not it suffices for a sale.

Before doing anything though, how do you plan to invest the proceeds, which as her funds should be dedicated to her care?    If Medicaid is a potential consideration, factor that in.   Igloo is a Medicaid expert and usually posts on threads like this.

What contingencies have you considered for MIL's care for the rest of her life?   I'm assuming since you wrote that you have two homes that she'll be moving in with you.    Are there other options under consideration?

Whatever you do, the proceeds from sale of her house need to be reserved for MIL's care.