I have a distant aunt that went into a nursing home two years ago after falling in her home. This week, we found out that the home went into foreclosure and is set to be sold at the end of June. She is 89 years old and in poor health, there is no possible way she could live on her own again. The condition of the house is uninhabitable by any human being. An investor approached her and offered to pay off her mortgage and give her a good amount of cash. She's refusing to move forward and is insistent that she will pay off the bank and move back into the house. As I am sure you can imagine, she's very strong-willed and doesn't want to lose her independence. We're her only living family members and want to do what's right for her. Can anyone share a similar experience or give me some advice? If she pays off the mortgage she will almost be out of money.
Have you explained that she will lose ALL of her equity if she lets it go to foreclosure? Is there anyone she trusts to actually hear what they are saying? Maybe selling the house and downsizing could be the compromise and solution she can get. Doesn't mean it will happen but, she could be led to believe she has other options besides a nursing home.
Maybe, the investor can wait for a month or two, Auntie can at least bring the mortgage current, which means paying for the foreclosure, usually several thousand additional dollars, on top of mortgage payments.
This will give you time to get it sorted out. Because once she goes on Medicaid there will be no money for her to pay towards the house, no taxes, insurance, utilities, maintenance, nada! All of her monthly income will go towards her share of costs for her care.
If she is on Medicaid, let it go to foreclosure. Selling it now will effect her Medicaid. She will have to go off Medicaid, spend down the proceeds and then go back on Medicaid. If she is on Medicaid, the house is an exempt asset at this point. Once she passes, Medicaid can place a lien on the house. If its been foreclosed on, them Medicaid is shown that. Nothing they can do at that point, family cannot be held responsible.
Even if she is paying privately, just let it go. It needs fixing up, it probably has a tax lien and payments are behind. She probably will get very little in proceeds. She should have taken the offer.
The patients will be kept by new management or will be placed. They don't have to return home. They will not likely be going home.
Your aunt can stay in her nursing home on medicaid if her finances are gone, and still have her own home until her death. Though having still a mortgage is very problematic. At that time after death, in that case, medicaid will attempt to recover funds when the home is sold. That she is already in care with a mortgage outstanding means at one point or another the home will likely be sold or foreclosed on.
Strong willed is one thing. Is she competent also? Has she appointed a POA? Is she diagnosed with dementia?
As a niece who is not her POA there is very little you can do for your aunt. You certainly can see an elder law attorney with her to find out what her options are and what her best way forward might be (if she is competent) or you can see one alone if she is NOT competent and you wish to be her guardian. If she is competent and wishes to make you POA she can do so. If she is diagnosed with dementia she may require your guardianship or guardianship of the state if you feel you aren't up to handling it (it is a huge onerous job with required meticulous record keeping. With an uncooperative aunt who is not making good decisions for herself I would not myself want guardianship or POA. I would allow the state and APS to address issues of safety, competency and the distribution of monies and home regarding payment for care.
How has she been paying for the nursing home up to this point?
Is she in AL or LTC?
Without PoA I don't think the facility can give you any information, but you could try to contact the admin. They may already have guardianship for her (as is sometimes the case) or else they can contact social services to get her on their radar for guardianship.
If her facility accepts Medicaid, and she qualifies, she will remain in the same place but most likely be moved to a shared room.
Please be aware that any information she is telling you may in fact not be accurate or even remotely true, as can be the case of elders with cognitive or memory impairment.
More info would be helpful.