If my 90 year old aunt walks away from her reverse mortgage, will it affect her social security and medicare/Medicaid benefits?

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If my 90 year old aunt walks away from her reverse mortgage, will it affect her social security and medicare/Medicaid benefits?

She is sick with cancer and lives with my father but pays all monthly bills on a house that she doesn’t live in. The reverse mortgage is way over the market cost of the property.

Asked on June 15, 2019 under Real Estate Law, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

No, it will not: those benefits are independent of a person's debts or defaults, so walking away from the mortgage will have no effect on them. Further, social security checks cannot be garnished, so even if the lender were to decide to sue her for the unpaid balance on the loan, they could not intercept or take part of her social security.


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