The nursing home is located near the city of Paillaco, some 870 kilometers south of the Chilean capital, Santiago.
Police say neighbors were able to rescue three people, but Paillaco Mayor Ramona Reyes said all others died in the blaze because the nursing home had locked patients inside their rooms.
"The rescue by the community was not possible because when they tried to reach them at the two-story wooden house, all rooms were under lock," Reyes told local Radio Cooperativa.
"It's a terrible, regretful situation that has appalled us."
The nursing home's owner denied that, saying all the patients were self-sufficient and the rooms were unlocked. "There was a staircase that was left locked. They were all in their rooms but not under lock," Silvia Magaly Zapata told Radio Cooperativa. "Besides, they were all self-sufficient and woke up early. They were wonderful people, although schizophrenic."
Local media reported that firefighters struggled to contain the blaze because nearby hydrants failed, forcing them to use water from a swimming pool several kilometers down the road.
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