Legal Question in Real Estate Law in Iowa

I have a seller prospect that is disabled and can no longer live in their home. They have been in a nursing home since Oct. of 2009. There house is being foreclosed on and they know there is nothing that they can do about it. They are not interested in a short sale, I have tried. Now they have come to a situation that the bank that carries the loan has went bankrupt. They didn�t think anything of it do to the fact that they are in a nursing home the rest of their lives anyway. BUT� Medicare has sent them a notice that they can no longer live in the facility they have been calling home for the last 7 months due to the fact that they own SFR Property. (Debt is greater than the value of the property) I have been thinking about doing a quick clam deed with them to get the house out of their name and just put it in my name. I have been told that this will fix the Medicare problem, and they will be able to stay in the nursing facility they are currenty in and like. Now my question is can I put a tenant in this house and cash flow this property till the foreclosure is finalized???


Asked on 6/22/10, 2:59 pm

1 Answer from Attorneys
Robert Luedeman solo practitioner

You can rent to anyone you want, but your effort to get the home out of the owner's name with a quit claim to avoid medicare's reach will probably fail because there is a 5 year lookback on transfers of real estate. I wouldn't touch this deal with a ten foot pole myself.

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Answered on 6/23/10, 8:27 pm


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