I want to buy my mother’s house using a land contact, will this disqualify her from Medicaid?
A few months ago, my mother moved into an assisted living facility. I what to buy her house and use it as a rental property. In 2 ½ years her savings will be depleted and she will apply for Medicaid. (House is paid off). This house is in Illinois and is now empty.
I would like to establish a land contract (also called owner financed loan) with my mother to buy this house. With this agreement, I will buy the house at fair market value. For the next seven years, I will make equal monthly payments into her account at the assisted living facility, until the house is fully paid off. Making payments to the assisted living facility will ensure that all the money will be used for her care.
I would love to buy the house outright but it is very difficult to get a loan these days. My family has owned the house for almost 50 years and we want to continue to keep it in the family’s name.
Also does the Deficit Reduction Act of 2005 (DRA) allow for such an arrangement?
Notice the excerpt below:
“The DRA provides that any purchase of a note, or any loan or mortgage, will be treated as a transfer, subject to penalty unless the following conditions are met:
• The repayment terms must be actuarially sound;
• Payments must be made in equal amounts during the term of the loan with no deferral of payments and no balloon payments; and
• The note, loan or mortgage must prohibit cancellation of the debt upon death of the lender.”
Taken from: https://www.cms.gov/DeficitReductionAct/Downloads/BackgrounderTOA_.pdf
Categories: Mortgage Tags: assisted living facility, balloon payments, deferral, deficit reduction act, deficit reduction act of 2005, land-contract, medicaid, rental-property, repayment terms, seven-years
"Account closed by creditor" — good or bad?
I have a credit card account that was closed seven and a half years ago. I'd forgotten to pay the bill and the bank closed the account. Six months ago (ie after seven years) the negative went off my credit report (Yay!). So the status is now "Pays as agreed" with no blemishes, but the remarks say: "Account closed by credit grantor". I've found that what's in the comments does matter, so I'm worried this will impact my score. The guy at TransUnion said that negatives go away after seven years but good accounts stay for ten but not to worry since this was a good account. I think it's never good when the creditor closes the account
Categories: General Credit Tags: account, accounts-stay, blemishes, credit-card, credit-grantor, credit-report, creditor, creditor-closes, good-accounts, half-years, negative, pays-as-agreed, remarks, score, seven-years, six-months, the-creditor, yay
Do Consumer Finance Accounts ever drop off your credit report
After a few years of working on trying to improve me credit, I recently pulled my two reports. Under 'Understanding Your Score' in my TransUnion report, it says that I have two CFAs that are hurting my score. Yes they are there. I had to get the loans to help get me out of this mess. They are paid in full and closed - have been for several years. I thought bad marks would eventually drop off if you kept your nose clean. Am I cursed to have these two accounts on my credit even though they were paid timely? It says some lender will look negatively on having these accounts on your credit report. Will they ever drop off? After seven years, can I ask for them to be removed, or are all lenders always going to know I had problems in the past and judge me for that past? My TransUnion score is now 722, by the way, but if lenders don't like to see them, I don't want them there.
Categories: General Credit Tags: Credit, credit-even, eventually-drop, lenders-don, loans, recently-pulled, score, seven-years, trans, transunion, two-accounts, your-credit
How much of a bump?
After no lates payments for almost seven years my three baddies will be falling off this year. How much of a bump point-wise (if any) might I see in my credit score?
Categories: General Credit Tags: bump-point-wise, Credit, credit-score, lates-payments, seven-years, three-baddies, Year
Removal of derogatory
Do you have information as to when derogatory items will be removed from my credit reports. I'm looking for the month and year that Equifax and Transunion will eliminatee these items. Perhaps there are special reports that contain this information. Most of these derogatory items occurred five to seven years ago.
Categories: General Credit Tags: Credit, credit-reports, equifax, items-occurred, month, seven-years, special-reports, the-month, transunion, will-eliminatee
statute of limitations on 7 year old suit
Is there a statute of limitations for a suit for unpaid back rent in So. Cal? It has been seven years and i just now have received notice of intent to collect funds when I was leasing a home and was out of work
Categories: Mortgage Tags: collect-funds, court-appointed, date-or-actual, knowledge, notice of intent, seven-years, statute of limitations, suit
Buying My Moms property from medicare
I have problem concerning My Mom home in Ohio, she is now on medicaid (and is in a rest home) and according to the Law neither she or I can keep it. Due to the fact the way she had the deed to the home places set up.
Categories: Mortgage Tags: deed, fact-the-way, from-the-state, lawer, leagal-claim, medicaid, medicare, mom, moms, Property, realestate agent, rest-home, sell-the-place, seven-years, state, state of ohio, Tho
Question About Expiring Negative Credit Item
Hello, I have always had excellent credit but almost seven years ago I had a negative credit item appear on my account. I had heard that it would expire after seven years, but I'm curious as to what date they go by. The negative credit item states "Date Opened: 07/2003", "Reported Since: 05/2003", and "Date of Status: 04/03". Will it expire in April, May or July? I also disputed this negative item initially and "Account in dispute under Fair Credit Billing Acts" also appears, as does "This item was verified on Nov 2005 and remained unchanged" in the "Status Details" field. I don't know if the details of this negative credit item matter, but I had been charged fees ($70) by American Airlines that the never disclosed, nor did I ever sign for them. I fought the charge with my credit card company and won. American Airlines responded by sending this fee to collections. It never made a huge deal to me as my credit is still excellent and is the only negative item in my credit report. I'm just curious because I'd like to upgrade homes this year, but I'd like to do it after this item disappears to maximize my credit score. Many thanks!
Categories: General Credit Tags: american airlines, collections, Credit, credit card company, credit-billing, credit-card, credit-report, credit-score, details, Hello, item-disappears, many thanks, negative, negative-credit, never-disclosed, reported-since, seven-years, status-details, still-excellent, verified-on-nov, will-it-expire
CA listed as open account past due
Here is my situation: The only negative on my credit report is from a collection agency as a 120 day delinquency on an open account. If I pay the debt, am I correct in thinking that it will have a small positive effect on my score immediately (for bringing my open balance down), and a larger positive effect once seven years elapses from DOFD (for clearing my report of any negative activity)? Thank you.
Categories: General Credit Tags: credit-report, debt, delinquency, effect-once, larger-positive, only-negative, open, open-account, open-balance, score, seven-years, situation, small-positive