Does anyone know why a POA might apply for an adjustable-rate home equity conversion loan?

dnajaras: Pose these questions to your attorney.

I understand that you're waiting on him or her to get back to you.

Home Equity Conversion Mortgages (HECM) for Seniors differ from Reverse Mortgages in that a traditional private reverse mortgage is not necessarily backed by the federal government, whereas an HECM is not only underwritten by HUD, it is also regulated to consumer safety by the federal government as well. This allows interest rates charged to be far lower which means that it's a safer option as far as reverse mortgages go. And since you don't have to make regular payments on this loan, the risk of default is lower.

Read about it here:

https://www.hud.gov/program_offices/housing/sfh/hecm/hecmhome

You'll have to draw your own conclusions as to why such a thing was done.

dnajaras, this is an unanswerable question. Just like you, we can only guess. A guess is not necessarily a fact, so what's the point?

Why did you not say Reversed Mortgage. Since the loan has to be in the owners name, I am surprised the POA would even be able to get this loan since they don't own the home. If the owner has Dementia, they cannot enter into a contract. I think the money gotten thru a RV can be used for anything you want.

As Alva says, ask ur lawyer. I also think you need to just worry about your Medical proxy and not worry about what the POA is doing.

D.
Do you remain estranged from the POA in this situation?
If so, you will remain, in all likelihood, out of the loop, in that you can only guess at what is going on.
It is a real shame that family relationships have remained so adversarial and is not at all in the interest of your loved one.

You have often told us that you have access to an attorney to ask these many questions you have about another family member who has POA while you do not.

I understand all the many questions you have about long term care in-home versus facility, but we cannot guide you nor answer your questions. This is in the perview of the person in your famly who has been appointed the POA for financial.

Please consult your attorney. If he or she hasn't the answers you need it is doubtful we will.