Nursing Home Resident, Home Loan & Right Of Rescission

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Question:

Our customer now lives in nursing home and owes the nursing home for care. Our bank is making the customer a loan with her former home as collateral until the home can be sold to perspective buyer. The customer has granted a power of attorney to a third party. Is the Right of Rescission applicable since the customer no longer lives in the home?

Answer:

Although you could probably make a technical argument that the home is not the principal residence of the owner, I don't recommend trying this, any more than I recommend fooling with Mother Nature. The consumer that loses their home always gets more sympathy than the lender that took it from them.

-February 19
Flood - Dodging the BIG Wave , presented by Lucy Griffin and David Dickinson

First published on BankersOnline.com 2/2/03