Selling A Home To Pay For Care..
When selling a home to pay for care for a loved one, there are a few extra considerations to take. Should you rent the home out? Should you sell it? What about a Reverse Mortgage? There are so many options on the table today for you and your family members, it is difficult to know what is the best approach. If you are anything like me, you want to do what’s best for your loved one, and do absolutely nothing that would harm them.
I’ve prepared this short article outlining the four most common questions I have come heard from homeowners in Tucson in the 20+ years that I have been a licensed Real Estate Broker and Realtor here in Tucson. As an Investor, I often am contacted by the executors of estates who’s deceased relatives have made decisions that impacted their estate without thinking the consequences fully through.
Although I am not an Attorney, nor an Accountant, I would definitely recommend you seek the services of one for advice in this area. These are four areas however that I am most frequently asked about.
Selling a Home To Pay For Care
The first and most obvious option is to sell a home to pay for care. If you are selling a house to pay for assisted living, or selling your parents house to pay for care, you have serious considerations to think about. There are a number of both positive, as well as negative aspects to selling a home to pay for care.
On the positive side, if you must sell a home to pay for assisted living or care for a loved one; then there will be cash proceeds that you can use to help pay for assisted care. Depending on the level of care that your loved one requires, that amount can go a long way towards covering those expenses. A lifetime annuity can be purchased from the proceeds of the home sale to provide a monthly income.
Conversely, selling a home can be unpredictable. It is uncertain how long it will take for a home to sell and the amount of income that you would receive. Additionally, selling a home and netting proceeds can affect the Medicaid Eligibility of your loved one, so be sure to check with your accountant!
If you are selling a home to pay for care, click here for a fast, fair offer!
Renting A Home To Pay For Care
Renting a home to pay for assisted living or elder care can be tricky. If you or your loved one has a mortgage that is paid off or the balance is low, then the difference between the rent paid and the mortgage can contribute towards the health care costs you incur. However, you would be well advised to obtain a property manager or have a loved one manage it for them.
Another consideration is that if you are planning on using Medicaid, then renting a property isn’t an option as they do not consider it an “exempt asset”.
There are a plethora of options when it comes to reverse mortgages. They can be good options if used properly, and understood correctly. One of the most common misconceptions about reverse mortgages is that they do not need to be repaid. This is untrue. Reverse mortgages are simply loans made against the equity of your property. They must be repaid by the estate within one year after the death of the last spouse.
Using Home Equity Lines Of Credit (HELOC)
Another method of paying for elder care that some people use is by using a Home Equity Line of Credit (HELOC). There are advantages, as well as disadvantages to this as well. By using a HELOC, homeowners with equity can draw on their equity to help pay for assistance and care. Depending on the level of care that you or your loved one requires, and the length of time, it can be an option.
A significant disadvantage is creating liens on a home that have high interest rates, or unnecessary fees.
Selling A Home To Pay For Care
It doesn’t have to be difficult, or painful. In fact, the process is easy and totally in your control! What many of my past customers in this situation have done is call or text me at (520) 403-6227. Since I am a local Realtor who Invests, I can share with you the condition of the market where your home is, and if you like, make an offer on your home! I can give you a fast, fair offer on a home here in Tucson regardless of the condition. I can close when you need, I buy it as is, and there are no commissions or closing costs when selling directly to me!
Want a free evaluation of your situation and a fair offer on your home?
Call or text me today at (520) 403-6227 or click here and I will contact you quickly!