Medicaid puts lien on your home

charley0419

Let’s say you have a Reverse Mtg on home( which is a loan agreement that you have a certain amount of funds available at anytime) if you or spouse are in a home and on Medicaid and they put lien on your home “can you still take out loan agreement amount with no issues with Medicaid.” ????

M1

This is why you need a certified elder law attorney to help you....

Phoenix1966

Here’s a sort-of answer from 2019 offered by a NJ Lawyer:

“Q. Does recovery of a Medicaid lien on a home take precedence over a reverse mortgage? Or even a regular mortgage? I could foresee a situation where someone would take out a reverse mortgage to cash out, figuring they would be losing their home to Medicaid anyway.

— Curious

A. You’re right that people try all kinds of strategies to protect their assets from Medicaid.

But the rules surrounding Medicaid eligibility are strict, and the scenario you pose isn’t a simple one.

Regular mortgages and reverse mortgages take precedence over a Medicaid lien,said Shirley Whitenack, an estate planning attorney with Schenck, Price, Smith & King in Florham Park.

But, she said, there is a limit to the amount of equity that a person can take from a reverse mortgage.

“Moreover, reverse mortgage payments may affect a person’s eligibility for Medicaid benefits,” Whitenack said. “Mortgage payments are not counted as income as long as they are spent in the same month that they are received.”

Whitnack said the unspent balance from a lump-sum reverse mortgage, however, can result in excess resources over the Medicaid limit.

In addition, she said, if a person moves out of their home, for example, to a nursing home, the mortgage will likely come due.”

-source https://njmoneyhelp.com/2019/11/what-happens-with-medicaid-when-theres-a-reverse-mortgage/

So, you see, not really a straight answer.

As @M1 said, a CELA from your state is probably best equipped to give you a definitive answer.

Ecal

I second the recommendation to consult an elder law specialist in your state. It was money well spent. States vary widely in the way they administer Medicaid.

Joe C.

Charley, I am not sure where you live but in my area most CELAs offer a free 1 hour consultation where they review your situation and legal needs and make recommendations. Medicaid rules are different in every state so what may be a true in one state may be totally different in another. If you find a CELA that provides a free consultation then they can answer specific questions on your states Medicaid rules.

A. Marie

Dear Charley, please bite the bullet and have a consultation with a CELA, as the other commenters have recommended. Only a CELA can give you the advice that's right for your state and your situation.