How is this possible? Listening to this story really got my attention. The client told me that a number of years ago, her husband had passed away. She got the proceeds of an insurance policy and purchased 2 duplexes and paid cash for them.
She lives in one unit and rented out the other 3 units. A couple of years ago she had gotten ill and gave her children power of attorney in case something happened to her. While she was ill, they apparently worked with a bank and put 2 $100,000 mortgages on the homes. I have been doing mortgages for a long time and still can’t understand all the mechanics of how they pulled this off.
The kids had been making the payments up until a couple of months ago, when the mother was contacted about the payments. I can’t even imagine the shock. I asked if she had ever gotten statements from the bank, she told me that everything had been going to the kids, including the yearly interest statement. I asked her how she handled the conversation with her kids, she told me they said they were sorry, sorry are you kidding me. She immediately said, they are my kids and I need to stand by them.
Unfortunately, her credit scores have been damaged and need to wait a few months for the credit scores move up so that I can handle a refinance for her.
These kids do not deserve a parent like this, someone else would have already had them in jail.
