Dad Took Out $520K in Mortgages in Daughter's Name Without Her Knowledge

Unauthorized Mortgages and Power of Attorney

• 📌 A caller shares that her father, who passed away, took out approximately $520,000 in high-interest mortgages in her name over 15 years.
• ⚠️ This was done using a power of attorney created 15 years prior when she was traveling and had her belongings stolen.
• ⚖️ A lawyer advised that the power of attorney legally enabled her father to take out these loans on her behalf, despite her lack of knowledge.

Financial Predicament and Property Values

• 🏠 The mortgages are secured by properties, but their current valuations are inflated, meaning the mortgages are worth more than the properties themselves.
• 📉 One example cited is a property valued at $75,000 with a $180,000 mortgage, indicating significant underwater debt.
• 🏦 These loans were issued by private lenders, some of whom invested their RRSPs, and do not currently appear on the caller's credit report.
• 📈 The interest rates on these private loans are reported to be as high as 30%.

Legal and Financial Next Steps

• 📝 The caller has copies of the loan applications and signature pages, which were signed on her behalf using the power of attorney.
• 🚨 She has not yet filed a police report but is considering it, alongside disputing the validity of the debt with the lenders in writing.
• 💸 The estimated total debt, after accounting for property values, is between $250,000 to $300,000, in addition to a recent $90,000 student loan for flight school.
• 🚀 Despite the overwhelming debt, the caller is a recent flight school graduate with potential future earnings of $60,000 to $100,000 per year, and the advice is to prepare for a long-term debt payoff plan, akin to the "Baby Steps."