With foreclosure proceedings against a Westlake Lake home for the terminally ill stalled by legal action, state health officials said the facility will be allowed to operate for now.
Isobel Oxx, who distressed neighbors when she opened the home a year ago, faced foreclosure and possible eviction a week ago on her Leeward Circle property after failing to make mortgage payments to GE Capital Mortgage.
But Oxx said and state officials now say the house was no longer in foreclosure.
"Her notice to be out of the property in 30 days has been put on hold," said Bill Jennings, district administrator of the local branch of the state Department of Health Services. "There is some kind of court action pending."
On Friday, Oxx released a written statement saying the property "is back in the name of May Isobel Oxx, negating the attempted foreclosure sale and eviction notice which was thrown in the door."
Oxx also said she has filed a lawsuit in federal court and that the facility accepted a new patient Friday. Oxx, who has confirmed that she refused to make payments on the house, said her facility is owed more than $100,000 in insurance claims.
Efforts to foreclose on the home prompted an investigation by state health inspectors who said if Oxx no longer owned the property, her license to operate the facility would be void. State officials also said they wanted to ensure that the four patients at the facility were being provided with appropriate care.
After an initial probe into conditions at the house earlier this week, Jennings said he was satisfied that the patients were being cared for properly. Jennings said he was then notified this week by the mortgage company that the foreclosure proceedings were on hold.