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mhg08051 · Joined: 24 Jun 2010 Posts: 1 1.47 Dollars($)

My father is getting ready to sign for a reverse mortgage in NJ. He is currently on SSI medicare and receives medicaid and other low income benifits. My question is he is planning to take this loan out so I can pay off Sallie mae and attend grad school in fall. If he gets the check and cashes it in instead of of depositing it, will he lose his Medicaid and other low income benifits, even if he does officially show the money in the bank? I know it will not effect Medicare and SSI, he is worried about the others. I am extremely worried about the others. I know that on several sites they say if you do not have more then $2,000. in bank funds and sources you are alright. But won't they ask where is the other $50,000 on the check you cashed? I mean do they get notified at settlement? or is this transaction, nonreportable to benifits people? I am really confused and do not want him to hurt himself by helping me...any input, please. Crying or Very sad

smithsussane · Posted: Fri Jun 25, 2010 12:09 am Post subject:

Hi mhg!

Welcome to forums!

As far as I know, if your father is on Medicaid, any reverse mortgage proceeds that he receives must be used immediately. Any funds that you retain would count as an asset and could impact his Medicaid eligibility. For example, if he receives $5,000 in a lump sum for some home repairs, then he needs to use the whole amount in that calendar month. Any residual funds remaining in his bank accounts in the following month would count as an asset.

Feel free to ask if you've further queries.

Sussane

Posted: Fri Jun 25, 2010 12:46 am Post subject: Thanks Sussane

But Do you think if he just cashes it in, there is nothing in the bank..That it would be ok? I am kind of feeling nothing showing in account reguardless, of amount cashed, should be ok....right? Grad school for me won't be until mid September and as long as there is nothing in bank account except for a couple hundred. At settlement, they don't contact any county or state offices, right? So do you think it would be ok once he cashes it?

Niicss · Posted: Fri Jun 25, 2010 2:18 am Post subject:

As far as I can understand, your father won't face any issues regarding Medicaid eligibility if he cashes in the check and spends it off.

gmakerley · Posted: Fri Jun 25, 2010 11:08 am Post subject:

You'll have an awfully tough time finding a financial institution that will "cash" a check in the amount of $50,000. Might I have said "impossible"?

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