Seller on Medicare with son involved - not sure how to proceed!

[Jacqueline Coombs]

Hi, everyone! I am wondering if anyone has bought a house from a seller on Medicaid before? I found the house through bandit sign marketing and I intend to hold and rehab it. I have been corresponding with the seller's son whose mom ( the sole legal owner) is in a nursing home ( left the house 5 months ago). He wants to sell the house as it is vacant and a headache for him and the family. I met with him and his mom and we signed a PA so it is submitted already to the title company. He asked me if the title company could give him the check so he could help with his mom's care but I told him that only the legal owner can receive the funds and that Medicare will eventually take those funds as reimbursement. The son does not seem to understand that I cannot just pay him for the house. I referred him to an estate lawyer but he still thinks he can get around having relinquish the proceeds of the sale! Even if she deeds it to him for $1 and then I buy it from him, won't that cause his mom to still owe $ to Medicaid? Has anyone successfully closed one of these deals without creating a financial mess for the seller on Medicaid? Thanks! Jackie Botham, GR, MI