My mother recently went into a nursing home possibly on a long-term basis. She owns a home that has a reverse mortgage on it which is two years old. She is on Medicaid.
Once she has been in the nursing home for 12 months and me and my sister sell the house who will get paid first: Medicaid for the cost of the nursing home or the reverse mortgage $28,000 my mother received two years ago? I was told that Medicaid would file a state recovery lien against the house and they would get their money first, then reverse mortgage and if there's any money due after that it would be mine and my sisters responsibility to pay.
It appears we got one heck of a headache to deal with in the next few months.