Posted on: 23rd Jun, 2010 02:25 pm
As I understood it, one can not transfer ownership of a property when they have an existing REVERSE mortgage. If one of two parties in the household (both on the deed and reverse mortgage) enters a nursing home, can they then transfer ownership of the home to a son or daughter without first paying off the loan? They want to do this in order to NOT own a home and qualify for government aid (medicaid) (which is fraud any way), and the daughter insists they will lose the home if they go on medicaid to pay the Nursing home. (which is not true, although they might have to sign a bond and mortgage agreement) Thank you for your help.
Hi betterhealthandhome,
Reverse mortgage is available only to the seniors. Thus, the property should be in the name of the seniors who are 62 years old while they apply for a reverse mortgage. If the seniors transfer the property to their children, then the loan can become due immediately and the senior citizen will not remain eligible for the Medicaid benefits as well. If the children want to save the property, they can pay off the medical bills when their parents are gone. If the children pay off the dues, then Medicaid won't place a lien on the property.
Reverse mortgage is available only to the seniors. Thus, the property should be in the name of the seniors who are 62 years old while they apply for a reverse mortgage. If the seniors transfer the property to their children, then the loan can become due immediately and the senior citizen will not remain eligible for the Medicaid benefits as well. If the children want to save the property, they can pay off the medical bills when their parents are gone. If the children pay off the dues, then Medicaid won't place a lien on the property.