Posted by rgkeeney on December 06, 2009 at 22:47:31:
True, if this house were actually an asset to this woman. They are only asking the amount to pay off the mortgage company. She is not presently on medicaid and her daughter was told it would take at least a year for medicaid to have a bed for her in the alzheimer center. The house is also tagged and needs a lot done to it. If it didn’t have the potential to make me about 30K I wouldn’t be interested in tackling it. The daughter’s main concern in all of this is to get clear and free of her mother’s debt. The mother doesn’t have any money of her own anymore, it has gone to care for her. Thank you for your input.
rgkeeney
Posted by rgkeeney on December 06, 2009 at 03:00:44:
I am making an offer on a house I plan to rehab and live in that is in pre-foreclosure. My offer is to do all necessary repairs to keep the house from being moved from a Green Tag (repairable) by the city, to a Red Tag.(for demolition)In addition to this I will do all regular cosmetic improvements to the house including but not limited to heating/cooling. I am pre-qualified for a grant that will pay for many of the improvements. I do not have the funds to outright buy this house and I am unable to obtain a loan through a bank. I am a single mom with 4 kids at home. I talked with the mortgage company that holds the note on the house that is approx. 3 months behind. They will talk with me about taking over the payments if the owner will give them permission. The house is for sale for $39K. ARV is around 80K but, if I decide to sell the house later on I could get around 95K if I owner-finance it. My question here is, how should I present my offer to the mortgage company? What does the mortgage company want to take place here? What do I need to tell them to make them want to work with me? I want to have the back payments sent to the back of the mortgage and for them to defer payments for 6 months while I repair and improve the house. They will do a short sale if no one buys the property for the asking price. Also, I forgot to mention that the note would remain in the previous owners name until I can either get the present Mortgage Co. to finance it to me after I have proven I will make payments on time and do the improvements I have said here, or find other funding. This is a problem for it to remain in the current owners name as her daughter is handling the sale of this house for her (she has alzheimer’s) and she needs to get rid of her assets so she can qualify for medicare. Is is possible for the owner(mother) to deed this property to her daughter (while she still owes money to the bank on it) to get it out of her name? Any help here will be appreciated.
Thank you,
R.G.Keeney
Posted by DJ-nyc on December 07, 2009 at 13:25:19:
“I do not have the funds to outright buy this house and I am unable to obtain a loan through a bank”. You may want to talk with the daughter; have her get Power of Atty and Seller finance to you. The Medicaid issue is their problem not yours; they (medicaid) can go back 3 years and whack their care for the Mother. The do need to get the prop out of her name asap. If you do find some money or a partner you may just want to do a Short Sale. Good luck,
DJ-nyc
Posted by michaela-CA on December 06, 2009 at 12:40:26:
The mortgage and the deed are 2 different things.
If you buy the house from the owner subject to the existing mortage, the deed would be in your name, but the mortgage note would stay in the original owners name.
If the mortgage company actually agrees to have you assume the loan, then the loan should go into your name as well as the deed, but the original owner would still be held responsible possibly - depends on mortgage company.
The owner could transfer the deed of the house to her daughter and the loan would not get called due by the mortgage company, but it would still keep the mortgage in the owner’s name.
Also, be aware that medicare has a certain number of years (4?) to go back and check for any assets transferred, and undo the sale.
Posted by rgkeeney on December 07, 2009 at 16:11:51:
I am not for certain, but I think she already has power of atty. I asked for a seller finance, but the issue about her mother is the hindering factor as the mortgage would still remain in her mother’s name. Do you think I might be able to get some private money or a partner, when I am going to be living in the property?
Thank you for your help.
rgkeeney
Posted by rgkeeney on December 06, 2009 at 15:21:46:
So, you are saying that putting the deed in the daughter’s name is not going to help? Why would medicare do that? To take the property for medical expenses? She is not on medicaid, but is trying to qualify for it. Her daughters are having to pay for all her medical expenses right now. Thank you for your help!
Posted by michaela-CA on December 06, 2009 at 17:00:43:
Look at the big picture - medicaid is supposed to help people pay for their medical expenses that don’t have the funds to do that, and it’s coming out of our taxes.
So, if a person has assets that could actually pay for this, then they can rightfully go after those.