Posted on: 13th Jul, 2011 04:38 am
If you gave a mortgage and you were given a life estate on the property,if you sell the house before the giver is deceased, can you get the mortgage money back before medicaid divides the life estate for nursing home payback, or do they consider the remainder interest the payback.
I don't quite understand your question. Who gave a mortgage? Who is given a life estate? Are you looking to get a mortgage on a life estate?
The value of a life estate is only equal to the discounted cash flow for the remainder of the life estate. We are not talking about the value of the property anymore; it is the value of the partial interest. Assuming you can find a lender willing to loan money on something like this, the loan would become due upon the end of the life estate.
To sell prior to the end of the life estate, you cannot sell complete fee simple rights to the property. You could only sell the partial rights remainder of the life estate. Upon death, the property rights will be transfered to the final beneficiary of the estate.
The value of a life estate is only equal to the discounted cash flow for the remainder of the life estate. We are not talking about the value of the property anymore; it is the value of the partial interest. Assuming you can find a lender willing to loan money on something like this, the loan would become due upon the end of the life estate.
To sell prior to the end of the life estate, you cannot sell complete fee simple rights to the property. You could only sell the partial rights remainder of the life estate. Upon death, the property rights will be transfered to the final beneficiary of the estate.
i gave a mortgage to my mother. She gave me a life estate on the property. If we sell the property before her death, do I get repaid the mortgage loan and interest, or does MA medicaid consider the giving of the life estate as payback for the loan. I gave her the loan and she gave me the life estate on the same day. So does the mortgage come out of her financial interest in the house at the time of sale or from my remainder interest repaying myself
You can recover the mortgage from the sale of the property. However, if your mother has gone for Medicaid benefits , then they can come after the property in order to recover their dues.