Deed And Refi?
Hi all,
I'm in the process of trying to acquire a property from my girlfriends mother who has a POA for her mother who is in a nursing home. FMV is about 115k. Purchase price is 95k. I'm looking to do this w/ the least amount of money out of pocket as possible. I can get an 80/20 loan but the 2nd's rate would put me into negative cashflow every month. My g/f's mom is telling me all the proceeds from the sale will go to pay the nursing home bill of 5k per month...after that, medicare takes over. My question is this.. Can I just have her deed the property over to me and then refinance so that I get better financing terms. (property is currently free and clear). If I do this, what impact will that have on the medicare situation? I don't believe they've put a lien on the propert but they will if they dont get paid.
Thanks in advance!
Why don't you have an attorney draw up an mortgage with the first payment a few months down the road. Have her then quit claim the deed to you and then refinance cashing your possible future in mother-in-law out.
Medicare just will not provide its full about of support if the person has assets that can provide that support, like the equity in the house. Medicare would require that to all be used up before they start providing payment assistance to the nursing home.
You can't just transfer assets to other members of the family either as I think they going looking back three years and ask where did these assets go.
So issuing a mortgage and cashing it out when you refinance would be one option you could do.
Thats sounds like it should work. Great idea! Do you think there will be any problems doing the refi since I will have only had it in my name for a short period?(seasoning..etc...)