Can I Pay My Mother's Bills if She's in a Nursing Home?

Full Question:

My mom had to be placed in a nursing home. The bank sent, her a form saying she should pay a certain amount to them. If I pay the money to the bank can the state still come in and take the property.
09/06/2011   |   Category: Debts and Credit   |   State: Ohio   |   #25464

Answer:

If you pay the amount, you should request a release and waiver that says will release her from any further claims. The answer will depend on all the facts involved, such as whether you have a power of attorney to act on her behalf. If the mother isn't competent to sign a power of attorney, a guardianship may need to be created to manage her affairs.

It is possible the bank holds a security interest in real property and if the mortgage isn't paid, the property vould be foreclosed. If the banki wins a court judgment and it remains unpaid, that the unpaid judgment could be used to create a lien on the defendant's property. A judgment lien is created when a court grants a creditor an interest in the debtor's property, based upon a court judgment. A judgment lien can be filed if an actual judgment in a lawsuit is obtained from a court. In some circumstances, judgments can be enforced by sale of property until the amount due is satisfied. A plaintiff who obtains a monetary judgment is termed a "judgment creditor." The defendant becomes a "judgment debtor." If the judgment remains unpaid, the judgment debtor may request that the court place a lien on the judgment debtor's property, such as bank accounts or real property owned, to secure payment of the claim to the injured party. After the judgment creditor places a lien upon the attached property, the next step in the collection process is to conduct a sale of the attached property to satisfy the judgment debt.

To create a valid lien, it is essential that the party claiming a lien should have the absolute property or ownership of the thing or, at least, a right to vest it; that the party claiming the lien should have an actual or constructive, possession, with the assent of the party against whom the claim is made; that the lien should arise upon an agreement, express or implied and not be for a limited or specific purpose that contradicts the express terms or the clear, intent of the contract. In certain circumstances, the lien holder may foreclose on the property if the debt is not paid in full. Liens can generally be removed by the payment of the amount owed. This payment can occur at any time up to and including the stage at which the closing documents for the sale of the property are signed.