[shhrubbery!]

No bank in their right mind would give a mortgage (which is $1200/mo they claim) for around $200,000 to people with a "combined" income of $45,000 and 4 kids to support. Obviously, the bank was given much different information and list of assets for them to secure a mortgage loan of that size.

Don't know about a mortgage, but it looks to me as if their house on S. Collington house was sold for $55,000 on 11/30/1990 (see public record below). I'm not familiar with Maryland's format, so I'm not sure exactly who the buyer was in that transaction, but it looks to me as if it was the Frosts.

The "not arms length" transfer listed that is dated 9/06/2005 (which would have been after the SUV accident of December, 2004), for $52,500, looks to me like some kind of legal formality, like a transfer between family members.
(But I'm not a real estate expert -- maybe some FReeper realtor or lawyer can figure out what it means):

Maryland Department of Assessment and Taxation

Account Identifier:

Ward - 01 Section - 01 Block - 1748 Lot - 017

Owner Information

Owner Name:	FROST, F. HALSEY FROST, BONNIE	Use:	RESIDENTIAL
		Principal Residence:	NO
Mailing Address:	104 S COLLINGTON AVE BALTIMORE MD 21231-2014	Deed Reference:	1) FMC/ 6744/ 954 2)

Location & Structure Information

Premises Address		Legal Description
104 S COLLINGTON AVE		16X123
BALTIMORE 21231-2014

Map	Grid	Parcel	Sub District	Subdivision	Section	Block	Lot	Assessment Area	Plat No:
1					1	1748	17	3	Plat Ref:

Special Tax Areas	Town
	Ad Valorem
	Tax Class

Primary Structure Built	Enclosed Area	Property Land Area	County Use
1936	3,040 SF		11130

Stories	Basement	Type	Exterior
3	YES	END UNIT	BRICK

Value Information

	Base Value	Value	Phase-in Assessments
		As Of 01/01/2006	As Of 07/01/2007	As Of 07/01/2008
Land	40,000	100,000
Improvements:	105,680	163,140
Total:	145,680	263,140	223,986	263,140
Preferential Land:	0	0	0	0

Transfer Information

Seller:	FROST, F HALSEY	Date:	09/06/2005	Price:	$52,500
Type:	NOT ARMS-LENGTH	Deed1:	FMC/ 6744/ 954	Deed2:

Seller:	MUTH, THOMAS A	Date:	11/30/1990	Price:	$55,000
Type:	IMPROVED ARMS-LENGTH	Deed1:	SEB/ 2687/ 545	Deed2:

Seller:		Date:		Price:
Type:		Deed1:		Deed2:

Exemption Information

Partial Exempt Assessments	Class	07/01/2007	07/01/2008
County	000	0	0
State	000	0	0
Municipal	000	0	0

Tax Exempt:	NO	Special Tax Recapture:
Exempt Class:		* NONE *

[Sybeck1]

A quick claim deed?

[OneCitizen]

Does it look like Frost’s father was the one who bought the property from Muth in ‘90? Ergo, the younger Frosts may have been living there as a gift from the elder Frosts and that improvements to the property may have been paid for by the elder Frosts (as they were the owners) and then the property was transferred to the younger Frosts for only $52,500 in 2005.

The elder Frosts could “gift” a lot of money every year to a family of 6. Would that money have to be reported on the SCHIP forms?