HELP Our mortgage is in my fathers name he must apply for Medicade, He will be denied w a 1400 mnth mtg being paid. FORECLOSURE?

Asked over 1 year ago - Jackson, MI

Do we walk away from this house? Let it go back to the bank? (BOA) is the mtg holder. Do we have ANY options? We have paid over a 100k so far. If we are forced to walk away from the mtg so my father may receive Medicade for his health care, how long will we be able to stay on the property we have livestock on 10 acres. Were told that when my father passes away the mortgage will be due in full. 134k My father is applying for medicaid - he must spend what time he has left in a nursing facility. I'm unable to care for him, it takes 3 nurses to move him w a Hoyer lift. 300 lbs double amputee of his legs. How will federal gov approve him for Medicade with his name on the mortgage and it looks like he is paying the mortgage 1400 a month. Since 2007 we have paid the mortgage & lived here.

Attorney answers (4)

  1. Amy Rombyer Tripp

    Contributor Level 3

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    Answered . Medicaid eligibility is an asset test. Your father can not have more then $2,000 in countable assets, the home that he owns is an exempt asset and the mortgage is irrelevant. Unfortunately, your father is going to owe a contribution called a “patient pay” and that is going to be almost all of his income and he will not be able to pay towards the mortgage. Medicaid has some special exceptions for a child who has lived in the home and cared for the parent for two or more years and you may be able to transfer his home to you without a penalty. Let me caution you, that is easier said then done as there is specific verification which is needed to be provided. If you can afford to continue to maintain the home and pay the mortgage there options. As the others have already advised, you need to seek out advise from a qualified elder law attorney.

  2. James C. Higgs

    Contributor Level 12

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    Answered . This is really an elder law question. He can clearly get approved for Medicaid while owing a mortgage. Some pretty simple documents drafted by an elder law attorney could save the house if you intend to keep it. If you move quickly we should be able to get this stuff done and save the house. The cost of the attorney fees and documents is more than warranted for saving your home.

  3. David L. Carrier

    Pro

    Contributor Level 18

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    Answered . All good news for you.. your farm/house is NOT at risk, but you have to take steps...
    Do we walk away from this house?
    No!
    Let it go back to the bank?
    No!
    Do we have ANY options?
    Yes!
    We have paid over a 100k so far. If we are forced to walk away from the mtg so my father may receive Medicade for his health care...
    Where did you get this idea - it is completely false!
    , how long will we be able to stay on the property we have livestock on 10 acres. Were told that when my father passes away the mortgage will be due in full.
    This is completely false also... the bank CANNOT enforce the due on sale clause on dad's death.
    My father is applying for medicaid - How will federal gov approve him for Medicade with his name on the mortgage and it looks like he is paying the mortgage 1400 a month.
    What do you mean "looks like"? It's irrelevant!
    Since 2007 we have paid the mortgage & lived here.
    Your situation is complex and I'd be happy to discuss it with you on the phone... In any event, you must consult with an elder law attorney, prono

    This is not legal advice. I am not your lawyer. You are not my client. You cannot rely on my response to your... more
  4. William Luke Labre

    Contributor Level 8

    Answered . There is additional information which I need to properly answer your question. However, I'm going to assume the following facts are true, and then answer the question in that manner: (1) Your home is in your father's name; (2) the mortgage is in your father's name; (3) Your father bought the home for you; (4) There's significant equity (more than $2,000) in the home.

    If these facts are correct, then an "end run" would be an action in the circuit court for a declaratory judgment which would ask the Court to impose a "constructive trust" on the home, and that your father has been acting as your "constructive trustee". I strongly suspect that this would be a "friendly" lawsuit, and could be expeditously resolved. Because of the Medicaid application, I suggest joining the DHS as a party.

    Once there was a Court order determining that your father was not the true owner, there would be no Medicaid issue regarding the house as his asset.

    One final matter: If your father was living with you in the house as his principal residence, then, as least as of recently, the value of the home would not be included in his list of assets. To my knowledge, Michigan was the only remaining state to exempt the principal residence from the asset list.

    I hope this helps. Best of luck to both you and your Dad.

    William L. LaBre, J.D.
    Attorney at Law
    68897 So. Cass Street
    P.O. Box 550
    Edwardsburg, MI 49112
    Ph: 269/663-8554

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