Your parent died. The nursing home bills were $200,000. Medicaid paid. Now the state wants their money back from the house.
You’re staring at a Medicaid lien that might wipe out your entire inheritance. Worse, you’re discovering that selling a house with a lien attached isn’t like a normal sale. Most buyers run the other direction. The ones who stay want steep discounts. And the state? They’re in no hurry to negotiate.
I’ve bought over 1,700 houses in 25 years. Probably 200 of them had Medicaid liens attached. Here’s what I know: you have two paths forward. One takes 4-8 months, costs thousands in fees, and leaves you wondering if you’ll see a dime. The other takes two weeks and puts cash in your hand.
Let me show you both.
What a Medicaid Lien Really Means (And Why Most Buyers Disappear)
A Medicaid lien is the state of Ohio saying “We paid for your loved one’s nursing home care. Now we want repayment from their estate.” Under Ohio Revised Code § 5160.37, when someone on Medicaid dies, the state files a claim against their property through the Medicaid Estate Recovery Program (MERP).
Here’s the part that catches families off guard: you cannot transfer ownership until that lien is satisfied. Period. The state gets paid first, before you, before anyone.
I’ve seen liens as small as $30,000 and as large as $400,000. The amount depends on how long your loved one received care and what services Medicaid covered—nursing home stays, home health aides, prescription drugs, hospital bills.
When you try to sell through traditional channels, here’s what happens:
- Buyer’s lender sees the lien and kills the deal (won’t loan on clouded title)
- Cash buyers demand 20-30% discounts “because of the hassle”
- You’re stuck negotiating with the Ohio Department of Medicaid, who responds in 6-8 weeks… if you’re lucky
- Your realtor has no clue how to handle it and refers you to a $3,000 attorney
That’s the hard way. Now let me show you what I do differently.
The Hard Way vs. The EZ Sell Way
| Factor | Traditional Sale (The Hard Way) | Cash Sale to EZ Sell (The Smart Way) |
|---|---|---|
| Timeline | 4-8 months minimum | 7-14 days to closing |
| Who Handles Lien Negotiation? | You (or your $3,000 attorney) | Me. I handle all state negotiations. |
| Repairs Required? | Yes. Buyers demand move-in ready. | None. I buy as-is. |
| Realtor Commission | 5-6% ($5,000-$12,000 on $100K-$200K house) | $0 |
| Upfront Costs | $2,000-$5,000 (attorney, repairs, holding costs) | $0 |
| Buyer Financing Risk | High. Deals fall apart constantly. | Zero. Cash closes guaranteed. |
| Emotional Drain | Months of uncertainty, paperwork, state runaround | One conversation. One offer. Done. |
Real Numbers: What a Traditional Sale Actually Costs
Let’s say your parent’s house in Dayton is worth $150,000. The Medicaid lien is $85,000. Here’s what the traditional sale looks like:
- Sale Price: $150,000
- Realtor Commission (6%): -$9,000
- Attorney Fees (Medicaid specialist): -$2,500
- Repairs Buyer Demanded: -$4,000 (new roof section, HVAC repair)
- Closing Costs: -$1,200
- 6 Months Holding Costs (utilities, taxes, insurance): -$3,600
- Medicaid Lien Payoff: -$85,000
Net to You: $44,700
Now here’s what happens when I buy it:
- My Cash Offer: $140,000 (slightly below retail because I’m handling everything)
- Realtor Commission: $0
- Attorney Fees: $0 (I coordinate with title company)
- Repairs: $0
- Closing Costs: $0
- Holding Costs: $0 (close in 10 days)
- Medicaid Lien Payoff: -$85,000 (handled at closing)
Net to You: $55,000
You walk away with $10,300 more in your pocket. In two weeks instead of six months. With zero hassle, zero risk, and zero out-of-pocket costs.
That’s why families call me.
Case Study: The Columbus Probate Nightmare That Became a 12-Day Close
Last year, I got a call from Janet. Her mother had passed away after three years in a nursing home. The house was in probate. There was a $127,000 Medicaid lien on a property worth maybe $180,000. Janet had been trying to sell for five months.
Here’s what she’d been through:
- Two deals fell apart when buyers learned about the lien
- One lowball offer for $120,000 (“because of all the risk”)
- Her realtor wanted her to spend $8,000 on updates before listing again
- The Ohio Department of Medicaid hadn’t returned calls in six weeks
- She’d already paid $2,200 to a probate attorney who told her “this might take another year”
Janet was exhausted. She just wanted it over.
Here’s what I did:
Day 1: I walked the house. Needed a new roof, furnace was shot, kitchen was 1970s original. I made her an offer of $165,000 cash, as-is, with me handling all lien negotiations.
Day 3: My title company contacted Ohio Medicaid directly with a proposed payoff.
Day 8: Medicaid agreed to accept $118,000 (down from $127,000 because we proved the property needed $15,000 in repairs).
Day 12: We closed. The lien was paid at the closing table. Janet walked away with a check for $47,000.
“I can’t believe it’s over. After five months of hell, Mike closed it in less than two weeks. I didn’t spend a dime or make a single repair. He handled everything with Medicaid—I didn’t have to talk to them once. I finally got to grieve my mom instead of dealing with bureaucrats and contractors.” — Janet K., Columbus
What You Need to Know About Ohio Medicaid Liens Before You Sell
After 25 years and hundreds of these transactions, here’s what most families don’t realize:
1. The Lien Amount Isn’t Always Final
Ohio Medicaid will negotiate. If your house needs major repairs or the equity won’t cover the full lien, they’d rather accept a reduced payoff than get nothing. I’ve successfully negotiated lien reductions of 15-40% by presenting repair estimates and fair market appraisals.
2. Time Is Costing You Money
Every month you hold that property, you’re paying:
- Property taxes
- Homeowner’s insurance
- Utilities (even minimal heat in winter to prevent pipes freezing)
- Lawn maintenance (code enforcement will fine you)
That’s $500-900/month disappearing while you wait for the state to respond to your paperwork.
3. Most Realtors Have Never Handled a Medicaid Lien
I’m not criticizing agents—most are great at what they do. But Medicaid liens require specialized knowledge of Ohio Revised Code § 5160.37, MERP procedures, and negotiation tactics with state recovery specialists. Your average residential agent doesn’t have that experience. They’ll refer you to an attorney, which adds $2,000-$4,000 to your costs and months to your timeline.
4. Traditional Buyers Won’t Touch a Lien-Encumbered Property
Mortgage lenders see “Medicaid lien” on the title report and immediately reject the loan application. That eliminates 85% of potential buyers right there. The few cash buyers in the retail market will lowball you 25-35% below value because they know you’re desperate.
How I Handle the Entire Process (So You Don’t Have To)
When you sell to me, here’s exactly what happens:
Step 1: I Visit the Property
I spend 20 minutes walking through. I’m not looking for perfection—I’m looking at structure, location, and repair costs. That’s it.
Step 2: I Make You a Cash Offer
Usually same day or next day. The offer factors in the lien, the repairs needed, and what the property will be worth after I fix it up. No games, no “subject to inspection” contingencies.
Step 3: My Team Verifies the Lien Amount
I work with a title company that specializes in Medicaid liens. They contact Ohio Department of Medicaid, get the exact payoff amount, and confirm what’s owed.
Step 4: We Negotiate with the State (If Needed)
If the lien is higher than the available equity or if the property needs major repairs, I negotiate directly with Medicaid’s recovery specialists. I’ve done this hundreds of times. I know what they’ll accept and what they won’t.
Step 5: We Close
Typically 7-14 days from agreement. At closing, the lien gets paid from the sale proceeds. The state gets their check, you get yours. Done.
You don’t pay me anything out of pocket. You don’t negotiate with Medicaid. You don’t wait months. You show up to closing and leave with a check.
Ready to Get This Behind You?
I’ll give you a fair cash offer in 24 hours and handle the entire Medicaid lien process.
No repairs. No realtor fees. No months of uncertainty.
Sell Your Dayton House Fast For Cash
Frequently Asked Questions
What is a Medicaid lien in Ohio?
A Medicaid lien is the state’s legal claim on your property to recover nursing home costs and medical expenses they paid. Under Ohio Revised Code § 5160.37, the state puts this lien on the house after the Medicaid recipient dies. I’ve seen liens ranging from $40,000 to $300,000+ depending on how long someone was in care.
How long does it take to sell a house with a Medicaid lien in Ohio?
The traditional route takes 4-8 months minimum:
- 30-45 days to verify the lien amount with Ohio Department of Medicaid
- 60-90 days to market and find a buyer willing to deal with liens
- 30-60 days negotiating with the state on payoff amount
- 30 days for closing
With a cash buyer like me, you close in 7-14 days with the lien handled at closing.
Can I sell a house with a Medicaid lien to a cash investor?
Yes. Cash investors buy houses with Medicaid liens every day. We handle the lien negotiations, pay off the state at closing, and you walk away with whatever equity remains. No repairs, no realtor fees, no waiting months for the state to respond.
What if the Medicaid lien is more than the house is worth?
The state will often negotiate. If a house is worth $80,000 and the lien is $120,000, Ohio Medicaid knows they’ll get nothing if you walk away. I’ve negotiated settlements for 40-60 cents on the dollar in these situations. A cash buyer can handle these negotiations as part of the purchase.
How much does it cost to sell a house with a Medicaid lien in Ohio?
Traditional sale costs:
- $1,500-3,000 for a real estate attorney specializing in Medicaid liens
- 5-6% realtor commission ($5,000-$12,000 on a $100K-$200K house)
- $800-2,000 for repairs buyers demand
- $500-1,000 for title work and closing costs
- 4-8 months of utilities, taxes, and insurance
Total: $8,000-$18,000+ before the lien is even paid.
Cash sale to me: $0 out of pocket.
Do I need a lawyer to sell a house with a Medicaid lien?
If you go the traditional route, yes—expect to pay $1,500-$3,000. If you sell to a cash buyer experienced with Medicaid liens, they handle the legal coordination. I work with title companies that specialize in lien payoffs and manage the entire process.
What happens to the Medicaid lien when I sell the house?
Under Ohio Revised Code § 5160.37, the lien must be paid before ownership transfers. At closing, the lien payoff comes directly from the sale proceeds. The state gets their money, you get whatever equity remains. With a cash buyer, this happens simultaneously—no delay, no separate negotiations.
Can I negotiate the Medicaid lien amount in Ohio?
Yes. Ohio Medicaid will negotiate if the property value won’t cover the full lien. I’ve successfully negotiated reductions when:
- The house needs major repairs
- Property value is less than the lien amount
- Family can demonstrate financial hardship
The state would rather get something than nothing.
The Bottom Line: Time vs. Money
Look, the traditional route is legal. It works. Eventually.
But here’s what it really costs: 6-8 months of your life dealing with bureaucrats and state agencies. $8,000-$18,000 in fees, commissions, and holding costs. Constant worry about whether a buyer will actually close or bail when they see the lien paperwork. Repairs you have to fund upfront with no guarantee you’ll ever recoup them.
I get it—some people want to squeeze every last dollar out of a property. That’s their right. But most families I talk to? They’re exhausted. They’ve been managing their parent’s decline, handling funeral arrangements, dealing with Ohio probate, and now the state wants $150,000 from a house that needs a new roof.
They don’t want to become part-time property managers and full-time negotiators with Ohio Medicaid. They want it handled. Fast, fair, and final.
That’s what I do. I’ve bought over 1,700 houses in 25 years. I’ve handled hundreds of Medicaid liens. I know the law, I know the negotiations, and I know how to close deals that other buyers won’t touch. When you sell to EZ Sell Homebuyers, you’re not hiring someone who Googled “Medicaid lien Ohio” last week. You’re working with someone who’s done this deal more times than your realtor has sold houses.
Would you like me to run the numbers on your property today?