Does anyone know why a POA might apply for an adjustable-rate home equity conversion loan? Can this loan be used to pay for long-term in-home care (24/7) or solely for long term nursing home care? Does it allow a resident of the home, in this case the POA, to continue to live in the home or will they have to vacate the home?

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dnajaras: Pose these questions to your attorney.

I understand that you're waiting on him or her to get back to you.
Helpful Answer (2)
Reply to Llamalover47

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:

You'll have to draw your own conclusions as to why such a thing was done.
Helpful Answer (8)
Reply to lealonnie1

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?
Helpful Answer (7)
Reply to Geaton777

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.
Helpful Answer (6)
Reply to JoAnn29

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.
Helpful Answer (3)
Reply to AlvaDeer
dnajaras Mar 24, 2024
please be patient and show compassion. my elder attorney who is very good and in demand often takes 2-3 weeks to get back to me. in the meantime, i reach out to this forum for any advice.
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