mom owes 37,000 to reverse mortgage company, they say its worth 54,000. County appraisal say its worth 46,000. I had it appraised by federal certified appraiser and he said its worth 33,000. Mom is in nursing home , if I sell it for what it owed to RMC and no profit is made, will it come back as being sold under fair market value and be considered a gift?
Also with a Reverse Mortgage, if Mom has been in a skilled facility for going on one year, then the Reverse Mortgage will want their money back immediately. So you would need to sell. I know you probably would like to get out from under this, because keeping a vacant house maintained is very time consuming, unless it is a condo, then there are those monthly condo fees.
The Reverse Mortgage company said the house is worth $54k, is that a current appraisal or was that the appraisal back when your Mom got the Reverse Mortgage? Usually when someone refinances, the bank appraisals tend to be higher, which I feel is totally unfair to the home owner.
When you do sell, then any equity left over will need to be used for Mom's care, Medicaid may stop for a month or two until the money is used up, then Mom will be placed back on Medicaid.