Nursing home foreclosures

[David Brenneman]

What happens to homes that are taken by nursing homes to cover medical expenses ? Is it sold by the nursing home? Sold to a wholesaler? Auctioned off? It seems rather hard to find information on these properties. Anyone have experience with this?

[Clay Lingg]

Here in PA you are looking at two different scenarios. First is what happens to the home before an institutionalized person passes away? There are a slew of opportunities for getting the property at a low price, providing for that person's family members, and complying with Medicaid laws to ensure there is no lien. Second, and likely more in line with the genesis of your original question, what happens to the home when someone was in a faculty and passed away? This answer will depend on how the person was paying (private or Medicaid). Assuming the institutionalized person didn't fork over $10,000 per month, if Medicaid paid then Medicaid will force the person's executor to sell the property to pay for the Medicaid expenses. Failure to do so or to get a fair market value can cause Medicaid to put a lien on the property or hold the executor personally liable. Hope this helps!