Last October, my Mom who has dementia (but we didn't know how bad it was at the time) cashed out all her mutual funds and used the proceeds to buy a house. At the time, I had tried to get her to do a mortgage but she was furious with her financial advisor (with good reason, but that's another story) and wanted him out of the loop, so she took all her money away from him and bought a house outright.
Shortly after that I took over handling her finances with her permission and with durable and general POA. I investigated getting a mortgage after-the-fact which is called a cash-out refinance.
So now she owns a house free and clear and has a pension with is fine for usual expenses. The problem is that we have some unusual expenses.
My mom's tax bill from cashing out her funds is about 20 K. Her tax guy suggested filing an extension until we could do the cash-out refinance. There are also assorted bills like ambulance transport and rehab facilities and credit cards for a total of about 30,000.
I initiated the cash-out refinance with US Bank on June 10. I explained the entire situation to them--that I would be doing it as POA, that my mom had dementia, etc. They said that was fine, requested 8 million documents, and said it would be 45 days, or 60 at most. I paid the fee of $350.00 to cover home assessment.
On July 21 I was told it was conditionally approved and would be going to underwriting.
Today I get the call that it has been declined because the POA does not specifically list this property and that we can't do a specific POA because my Mom has dementia.
I wish I could sue them up one side and down the other, but the most I am hoping for is to get the $350 back. They declined my mom for things I told them the first time I called.