Power of Attorney for My Mother

 
User avatar
rubicondave33
Member
Posts: 314
Joined: Sat. Jan. 26, 2008 10:02 am
Location: Indiana, PA
Stoker Coal Boiler: EFM DF520
Coal Size/Type: Rice/Anthracite

Post by rubicondave33 » Sat. Oct. 25, 2014 7:21 pm

Well, it has been one heck of a year. My mother was facing a sheriff's sale of her home for unpaid taxes last summer, and never told my wife and I anything about it. We learned of her situation from a concerned neighbor, who paid her taxes for her. The neighbor contacted us and laid out the story of her delinquent taxes to us, along with proof of payment. I thanked the woman and promptly repaid her.
We went to visit my mother and tried to talk with her about her financial situation and she wouldn't share any information. My wife and I tried to explain the advantages of agreeing to a POA, and how we would be able to help her better manage her finances, but she wanted nothing of it.
Fortunately, my mother has some really good neighbors. They have been keeping us informed of goings on with her.
Fast forward to last week. My mother finally agreed to allow my wife and I to have POA both at the bank, and a full POA from my attorney.
It seems my mother had been borrowing money and not making payments. She has been writing NSF checks as well. We are just in the beginning stages of managing her bank account, and working on paying her utility bills (all of which are past due). Yesterday, I obtained her full credit reports and learned that she is in debt to the tune of $18,000! What a shock! She has had a judgement against her and some of this debt has been handed to collection agencies.
She also doesn't have any of the documents on hand, plus doesn't keep a registry for her bank account. I have an appointment with my attorney for next week to discuss options, such as bankruptcy. Her bank account is completely exhausted, and she is on a fixed income, which limits the amounts, and to whom we make payments to.
The crazy part is, she has nothing to show for all of the money spent and the credit reports don't indicate any identity theft or other suspicious activity. I've spoken with a couple of the lenders already and my mother definitely did borrow the funds. Her bank account doesn't indicate any type of scam either.
I was wondering if anyone on the forum has had a similar experience and could offer any advice or insight to this situation.
Thanks in advance,
Dave


 
User avatar
freetown fred
Member
Posts: 30293
Joined: Thu. Dec. 31, 2009 12:33 pm
Location: Freetown,NY 13803
Hand Fed Coal Stove: HITZER 50-93
Coal Size/Type: BLASCHAK Nut

Post by freetown fred » Sat. Oct. 25, 2014 8:12 pm

The only suggestion I've got & realize it's real late for your situation RD, but for others, pay attention to what the hell is going on with family members that are getting up there in age.

 
User avatar
michaelanthony
Member
Posts: 4550
Joined: Sat. Nov. 22, 2008 10:42 pm
Location: millinocket,me.
Hand Fed Coal Stove: Vigilant 2310, gold marc box stove
Hand Fed Coal Furnace: Gold Marc Independence
Baseburners & Antiques: Home Sparkle 12
Coal Size/Type: 'nut
Other Heating: Fujitsu mini split, FHA oil furnace

Post by michaelanthony » Sat. Oct. 25, 2014 9:39 pm

Do the credit reports indicate credit card debt, or second mortgages? There are low life contractors that have all the paper work for lines of credit against a deed through "never heard of" second party lenders although many were squashed or ran for the hills at the brink of this last recession.
Bankruptcy looks to be your mom's best way out and for you as well, good luck. A living will or trust is also a good option as well. Good luck with mom.

 
User avatar
Rick 386
Member
Posts: 2508
Joined: Mon. Jan. 28, 2008 4:26 pm
Location: Royersford, Pa
Stoker Coal Boiler: AA 260 heating both sides of twin farmhouse
Hot Air Coal Stoker Stove: LL Hyfire II w/ coaltrol in garage
Coal Size/Type: Pea in AA 260, Rice in LL Hyfire II
Other Heating: Gas fired infared at work
Contact:

Post by Rick 386 » Sat. Oct. 25, 2014 10:26 pm

Dave,

I would contact her banks and ask for copies of her statements. I'm pretty sure they can go back at least 7 years or maybe more. I know that last year I had a question about a long gone auto withdrawal home equity loan from my shop account. I knew of it but never remembered how long the money had been coming out of the account. Sure 'nuff the bank could go back and get me the info. I think it was about 15 years of back data that they still had.

If you do indeed get the records, you could look for large withdrawal mounts indicating work performed or scams perpetrated against her.

Rick

 
User avatar
Richard S.
Mayor
Posts: 15183
Joined: Fri. Oct. 01, 2004 8:35 pm
Location: NEPA
Stoker Coal Boiler: Van Wert VA1200
Coal Size/Type: Buckwheat/Anthracite

Post by Richard S. » Sun. Oct. 26, 2014 9:17 am

rubicondave33 wrote:She has had a judgement against her and some of this debt has been handed to collection agencies.
Those collection agencies usually buy the debt for pennies on the dollar, if you want to offer them a settlement they may take it. One thing to be aware of there is a statute of limitations on how long they have to collect the debt, in PA if I recall it's 5 years since the last activity on the account and that includes any payments to debt collectors. If you make a payment it resets the clock. Once the 5 years is up they have no legal way to collect the debt unless you make a payment but they can still try and collect it, e.g. harass her about it.

If she is being harassed by the collectors you can ask that they validate the debt and tell them not to call again or you will contact the FTC. That should stop the phone calls for the most part but those debts get passed around, any new company that acquires it can call and the process starts again.....

Many years ago we had a relative pass away that had a large amount of CC debt and they had nothing to pay it off. It was a PITA for a long time, in your case I'm assuming she owns the house. You're going to want to get this straightened out as soon as possible because they can file liens or even go after the estate.

 
User avatar
SMITTY
Member
Posts: 12520
Joined: Sun. Dec. 11, 2005 12:43 pm
Location: West-Central Mass
Stoker Coal Boiler: EFM 520 Highboy
Coal Size/Type: Rice / Blaschak anthracite
Other Heating: Oil fired Burnham boiler

Post by SMITTY » Sun. Oct. 26, 2014 9:31 am

Yeah, collection agencies will take whatever they can get - just play poverty and you'll end up settling the debt for a fraction of what it originally would have cost.

I went thru this 14 years ago when I crashed my motorcycle, and didn't have a penny to pay the hospital. There were also a few trips there for asthma attacks that I couldn't pay - it all built up and before you know it I was like $18k in the hole.

My problem was, I had excellent credit with my card companies ... up until I paid the collection agencies with them. I had just finished school, and had card companies lining up to give me 7% interest rates (and this was in '00!). The card co. noticed the transactions, and TRIPLED my rate overnight ... :shock: Pay via check if at all possible.

 
User avatar
rubicondave33
Member
Posts: 314
Joined: Sat. Jan. 26, 2008 10:02 am
Location: Indiana, PA
Stoker Coal Boiler: EFM DF520
Coal Size/Type: Rice/Anthracite

Post by rubicondave33 » Sun. Oct. 26, 2014 11:02 am

Thanks for the advice, I'm sure it will be helpful. The trouble with all of this is, she incurred these debts years ago and never told anyone she was having problems paying. She has always been very private about her financial situation, which makes this even more difficult. All of her borrowed money isn't from her bank, its from lending companies that charge 25% interest!
She does own her home (mobile home) but rents a lot in a park. Her lot rent is 3 months behind. I've been in touch with the management office and have left four messages and they won't return my calls. The office's hours are M,W,F from 9-3 which makes it impossible for me or my wife to get there from work (we don't live in the same town as mom, and my work is all over the place). The one time I did speak with management they said I could simply drop off the payment, I think I need a receipt for it. The manager doesn't seem to be as cooperative as someone who wants their money should be. Mom has lived in that park for 28 years with no issues, so I'm not of the belief that they are ignoring me so they can evict her. Again, I suppose I'll have to ask my attorney to contact the office regarding her lot rent.


 
coalnewbie
Member
Posts: 8601
Joined: Sat. May. 24, 2008 4:26 pm
Location: Chester, NY
Hot Air Coal Stoker Stove: LL AnthraKing 180K, Pocono110K,KStokr 90K, DVC
Hand Fed Coal Stove: Invader 2
Baseburners & Antiques: Wings Best, Glenwood #8(x2) Herald 116x
Coal Size/Type: Rice,
Other Heating: Heating Oil CH, Toyotomi OM 22

Post by coalnewbie » Sun. Oct. 26, 2014 12:09 pm

The only suggestion I've got & realize it's real late for your situation RD, but for others, pay attention to what the hell is going on with family members that are getting up there in age.
Are you OK Fred. :D

 
samhill
Member
Posts: 12236
Joined: Thu. Mar. 13, 2008 10:29 am
Location: Linesville, Pa.
Hot Air Coal Stoker Furnace: keystoker 160
Hand Fed Coal Stove: hitzer 75 in garage

Post by samhill » Sun. Oct. 26, 2014 12:15 pm

I don't know if it applies to your mother or not but in Pa. some mobile home parks can evict & they become owner of the mobile home. Not sure about personal property, I don't think it does but it may be worth looking into. I think the sooner you contact a good reliable lawyer (hard to find) the better off you will be, an elder law attorney may be an asset in this case. Not all attorney's are used to this type of dealing so don't be afraid of asking yours if your going to need a different one.

 
User avatar
Richard S.
Mayor
Posts: 15183
Joined: Fri. Oct. 01, 2004 8:35 pm
Location: NEPA
Stoker Coal Boiler: Van Wert VA1200
Coal Size/Type: Buckwheat/Anthracite

Post by Richard S. » Sun. Oct. 26, 2014 1:18 pm

samhill wrote:I don't know if it applies to your mother or not but in Pa. some mobile home parks can evict & they become owner of the mobile home.
Sam I'm pretty sure those trailers are titled. What is going to happen is they will file a lien and start the eviction process. The owner isn't going to have the funds to resolve the debt let alone move the home or a place to put it. They can't even sell it because of the lien and even if they did the trailer park is going to insist the new owner move it. Since it's occupying the space at the trailer park it's going to be declared abandoned and they will take possession of it. Many of these parks will end up owning them, anybody living in one these trailer parks is in a really precarious position even if you are paying your bills. I recall one not too long around here that was sold and the new owners gave everyone notice to move and some of those people were living there for decades....

 
User avatar
rubicondave33
Member
Posts: 314
Joined: Sat. Jan. 26, 2008 10:02 am
Location: Indiana, PA
Stoker Coal Boiler: EFM DF520
Coal Size/Type: Rice/Anthracite

Post by rubicondave33 » Tue. Nov. 04, 2014 6:26 pm

Update: My mother's lot rent issues have been addressed and she will not be facing eviction. We spoke with an attorney today about bankruptcy, he advised us to not do it as she has no assets. We do have a plan to correct the debt though. It looks as though we can help her through this and hopefully convince her to look into assisted living arrangements. It will be a long, complicated process, but it will work.

 
CapeCoaler
Member
Posts: 6515
Joined: Sun. Feb. 10, 2008 3:48 pm
Location: Cape Cod, MA
Stoker Coal Boiler: want AA130
Hand Fed Coal Stove: DS Machine BS#4, Harman MKII, Hitzer 503,...
Coal Size/Type: Pea/Nut/Stove

Post by CapeCoaler » Tue. Feb. 17, 2015 12:17 am

Been there done that with a SIL...
Lots of hard work, many thankless hours but knowing you did the right thing...
Put the hard work in up front getting the plan in place and find a good lawyer or two...
Then the plan sort of takes care of itself but not totally...
You need to keep on top of things but on a weekly/monthly basis...
Rather than hourly or daily as it was in the beginning...
Trust your gut, if something seems amiss act on that feeling...
It is like having another kid...
In our case she is our 4th kid but the oldest one...
We were lucky that at the time our time was flexible enough to get the job done...
When you are doing the right thing and your intentions are honorable...
Others seemed to rise to a higher level and help out by doing the right thing also...
In our case many people went above and beyond...
There was also a higher power at work because so many things just seemed to break our way...
Just at the right time...
I know most people despise lawyers but if it were not for the good lawyers we spoke with...
And their generosity with their time...
The SIL would be in a very different place...

 
User avatar
Freddy
Member
Posts: 7293
Joined: Fri. Apr. 11, 2008 2:54 pm
Location: Orrington, Maine
Stoker Coal Boiler: Axeman Anderson 130 (pea)
Coal Size/Type: Pea size, Superior, deep mined

Post by Freddy » Tue. Feb. 17, 2015 6:21 am

What happens if she tries to borrow more money?

As for repaying the loans, certainly if you are going to somehow outright pay them, then you should be able to negotiate a much lower payment.... at least 50%, but if you pick a lower number, they might go for it. Make darn sure that the payment you make is accepted as payment in full. I know one person that "negotiated" with a credit card company to pay $450 to pay a $900 debt. As soon as they paid the $450, they got a bill for the remaining $450! Look for the words "Accepted as payment in full". If you can not outright pay them, then I'd see about sending them each $5 or $10 a month. As long as you are paying them regularly, they shouldn't be able to harass you. Assuming the mobile home isn't worth a million dollars, then accept the idea that they may put a lien on it. No judge will evict her if she shows she is paying regularly toward the debt. If she ever does pass away, they might take it, but also then all debts are paid as far as you're concerned.

I suppose perhaps she could stay in the mobile home, but I'd encourage her to apply to subsidized housing. Many have a 3 to 5 year wait for a unit to open up. Maintaining a mobile home can have quick and unexpected expenses. I kept my cousin in a mobile home for a couple of years. The worst fear, and it happened, is the heat going out at 2AM when it's 10 below zero. Make sure that Mom knows you need a phone call at 2AM if the heat dies, that she can NOT wait until the next morning. Every minute counts when a mobile home is losing temperature. Have a plan.... paying $500 or $1,000 for a 2AM repair is going to be much cheaper than fixing frozen and broken plumbing. Are YOU going to make the trip and do the repair? If not, you should have a prearranged repairman.

What if it needs a new furnace, refrigerator, toilet, roof, etc.? My cousin got lucky and is now in a subsidized housing. It is a HUGE weight off my shoulders.

One last thing, POA's stop upon death. A POA will allow you to write checks now, but not after death. If you have an attorney you might ask him what happens if the worst happens.

Best of luck to you. It's not an easy road.

 
User avatar
Hambden Bob
Member
Posts: 8535
Joined: Mon. Jan. 04, 2010 10:54 am
Location: Hambden Twp. Geauga County,Ohio
Hot Air Coal Stoker Stove: Harman 1998 Magnum Stoker
Hand Fed Coal Stove: Blower Model Coal Chubby 1982-Serial#0097
Coal Size/Type: Rice-A-Roni ! / Nut
Other Heating: Pro-Pain Forced Air

Post by Hambden Bob » Tue. Feb. 17, 2015 6:27 am

OK RD,You've been a Good Son ! You and Your Family have engaged in Climbing Mt. Mom.....Stay With It,as You've gotten some Good Advice already ! Something like this sure is Terrifying once the Uncovering starts ! :fear: More Thoughts later,I've gotta get to Work ! :flex:

 
User avatar
rubicondave33
Member
Posts: 314
Joined: Sat. Jan. 26, 2008 10:02 am
Location: Indiana, PA
Stoker Coal Boiler: EFM DF520
Coal Size/Type: Rice/Anthracite

Post by rubicondave33 » Tue. Feb. 17, 2015 6:51 pm

Thanks HB! And thanks to everyone else for the advice! It certainly is a long uphill battle, but we have managed to develop a budget for her bills and are actually managing a residual at the end of the month! It's far from over but I've been able to negotiate with creditors and reduce her payments.
If only I can convince her to move to an assisted living apartment...


Post Reply

Return to “Health”