Paying for these homes killed us and now that I can do something they are telling me my husband has to be home for the loan to go through?
After 2 long years, my husband is in a memory care home that is working out. The owners run it, and there are 3 caregivers that live there full time. But the last 7 months have been a full blown nightmare. All our money is gone. One place that was supposed to be temporary after his rehab stole 2,500.00 and I was going to use it to pay for the home he is in now.
Expenses were high here at our home, taxes, insurance, I sold the car, just to pay the memory care home. I went to the ER last November for a staph infection,and then talked to a person at the hospital about Medicaid. As always I put my husband first and was able to get him approved. December, I lived on minute rice all month. Then out of complete frustration I called some one that handled my divorce from my first husband many years ago, to inquire about divorcing my sweetheart:(( the financial burden along with the abuse I was receiving from these homes, we're killing me. She put me in touch with a wonderful humanitarian lawyer who I met with. He looked at the trust papers and power of attorney, and told me I should have seen some one a year ago. Anyways, I obtained 2 signatures from my husband's doctor stating his incapacity, and met with a loan company to borrow against the house. I need to pay back rent for the place he is in and cover other expenses. I am now the trustee. We have no mortgage, good equity, there is no one else. My question, when I made the appointment for credit counseling, I didn't complete it.
Because he said the loan would not go thru because my husband is not living with me. I am not on the deed, but what is going on? It's for him, I sign the papers the right way, everything. The whole point of this was to make sure he is allright, and he is. Paying for these homes killed us, now that I can do something they are telling me, he has to be home for the loan to go thru??? I told him I need surgery, among other things, and there is no possible way he could come home. Btw he fell last May and had a total hip replacement, and in his mind he doesn't know where he is. I am trying to understand all of this but it's so confusing? I tried so hard. Any thoughts or advice is greatly appreciated.
Or some other trust?
I don't know IF a RM can even be done on property held in trust.
RM as others have said are not a good idea as the owners or owner & spouse need to both be living there AND ALSO in addition often there are new costs to your ownership. Like required insurance(s) may increase - so maybe before you had a modest homeowners policy based on old value but now you have to have a higher homeowners (to cover the total debt or loan) plus any others needed for your area… like flood, windstorm, earthquake PLUS mortgage insurance. Insurance, taxes and maintenance are all responsibility of property owner to pay for.
I'm sorry that you feel you've been misled by social workers. What happened there?
As for a Reverse Mortgage, I am surprise the Reverse Mortgage broker would even consider the loan due to the fact that the husband has been in a continuing care facility for 2 years, if I read that correctly. Usually Reverse Mortgages will allow the owner to be away from the house for one year. The reason behind that is that in some cases it can take a year for the owner to be in the hospital and in rehab. The loan company hopes the owner returns to the house.
Once one year one day hits, then some Reverse Mortgage loans will become due and payable, check out the clauses. Current rule changes will allow the spouse who is still living in the house to remain, and once the house is sold or the spouse passes on, the loan becomes due.
Now, if the husband is on Medicaid and Medicaid will be paying for his care in a continuing care facility, then Medicaid will put a lien on the house. Now in the end, I don't know how the RM gets repaid and Medicaid also gets paid. That is where an Elder Law Attorney needs to get involved.... sooner than later.
So she is now in the family home and has those expenses to manage. She also has medical requirements of her own which she will struggle to pay for. She does not currently have title to the house, nor formal power of attorney, but she is acknowledged to be acting for her certified incapacitated husband presumably as his next of kin.
So the house is the major asset. What about income? Kixxybaby, do you have earnings, a pension, any sort of income of your own to live on?
I completely agree that you need specialist professional advice to help you plan a way forward. And this time, although I applaud how you've put your husband's care first, make sure the plan ALSO provides for your needs and your future. You're not any less important, you know.
For that reason, it may be for the best that the reverse mortgage hasn't worked out. That kind of loan might look like an appealing temporary solution, but what about later when the money's gone and the loan company owns your house?
Take heart, I'm sure there will be better options. I hope you can find good advice very soon, please keep us updated.
Did you get your husband on Medicaid? Are they paying for the memory care place?
Would it be possible to sell the house and buy something more manageable for you to live in on your own?