Is there temporary financial assistance for assisted living until Grandma sells her house?

1 answer | Last updated: Oct 13, 2016
Aud1380 asked...

Is there financial assistance for assisted living for my grandmother until she sells her home? I looked into ElderFinancial.com but you have to choose a facility that in on their site. Are there any other sites out there showing financial assistance?se


Expert Answers

Barbara Steinberg is the CEO and founder of BLS Eldercare Financial Solutions, which specializes in helping families pay for long-term care for their loved ones. A registered financial gerontologist, she speaks regularly on the topic of paying for long-term care and is a financial expert for Caring.com.

There are not very many options when it comes to temporary assisted living financial assistance. You mention one of them, ElderLife Financial Services (www.elderlifefinancial.com) . ElderLife offers an interest only "bridge loan" to augment your income so you can pay to move into and remain at the facility until your house sells. As you point out, the facility you choose must participate in their program.

Another program is the ERA Sellers Security® Plan. This plan is offered by select ERA real estate brokers. You enter into a contract with ERA to market your house and, if they do not sell it within a predetermined timeframe, they will buy the house from you at 80 "“ 90% of the appraised value. There are many rules that apply to this program. There are two predetermined timeframes, 180 days and 270 days, depending on the "absorption rate" in your area. Absorption rate is the amount of time it takes to sell a house. Although you sign an agreement to sell to ERA, your house remains on the market and if a buyer comes along, you can still sell to the buyer. You must use ERA as the listing broker, so they will charge a commission when it is sold, even if they buy it. You must agree to reduce the list price of your house at specified intervals. You, the seller, have to pay for an appraisal (by an ERA approved appraiser) and inspections, along with warranties, repairs and title commitments. The house must be in "marketable condition" and you need to have at least 20% equity or the money you will need at closing. Also, you must have been referred to the agent by the assisted living facility you are moving into.

If you would like to find out more about this program, go to http://www.era.com/eraresources/sellingadvice/sellersecurityplan.jsp