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5603 Volume III | Chapter 5

MISSISSIPPI [ RESOURCES: TRANSFER OR RESOURCES ]

Revised 05 - 01 - 06 2. If he sells the property on time, expect him to receive a reasonable down payment and have the balance paid over a reasonable length of time. 3. Expect him to take a mortgage or note for the balance due and to charge interest at the prevailing rate. If the individual has already disposed of the property without having taken a note or mortgage, the worker will: 1. Expect him to try to do so. 2. If he refused to try to do this, deny or terminate aid on the basis that the individual has refused to comply with agency policy. He may reapply at any time at which he decides he will comply. When an individual sells his property with the proceeds to come in over a period of months or years, count the down payment as a resource and the monthly, quarterly or annual payments as income. Include the interest paid as income. Ask the individual to take the note to the bank or lending institution to obtain the discount value. Refer to Bona Fide Effort to Convert Into Cash - Real Property, earlier in this chapter. USE OF REAL PROPERTY BY RELATIVES A TANF recipient is expected to use his property to supply his own needs and to obtain income if possible. This can be found in the state statutes. Therefore, when a relative uses property belonging to an individual or lives in the home with him, the relative will be expected to make some contribution to living expenses. This may include cash rental payment, in-kind payment such as fuel, produce, clothing or payment of taxes and upkeep, or services, either personal or housekeeping services. If the relative is using the land and is producing income from it, the individual will be expected to receive a reasonable rental. If the relative has joint ownership in the property, he will be expected to assume his share of costs of ownership such as taxes, upkeep and insurance from the income he derives. MORTGAGING OF REAL PROPERTY Distinguish between applicants and recipients in considering mortgages placed on real property. Applicants: Begin with finding out about any mortgages on property. If the applicant mortgaged his home or property other than the home before he applied and has spent the money, consider him eligible with the following exception: If the applicant mortgaged his home or property other than his home during the year immediately