Q: "Seeking advice on loan modification: If my mom (or we as POAs) signs, who is liable if the loan defaults?"
my brother took the loan using my mom’s credit. My mom is not in the mental state to sign the agreement. If myself or my son who are the power of attorneys signed that document for my mom, where does the responsibility lie if the loan goes into default.?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
If you or your son sign the loan modification document as power of attorneys for your mom, you are signing on her behalf, not assuming personal liability for the loan. Under California law, the responsibility for the loan remains with your mom, as the original borrower, even if you sign on her behalf using the power of attorney. The lender can only seek repayment from the borrower, which in this case is your mom.
However, it's important to be aware that if the loan goes into default, the lender may pursue foreclosure on the property. This could have significant consequences for your mom’s estate and any assets tied to the property. As power of attorneys, you should ensure that signing the loan modification is in your mom’s best interest and that you understand the potential financial implications.
It may be beneficial to consult with a legal advisor to fully understand your responsibilities and the best course of action for your mom’s situation. Ensure all actions taken are in alignment with your mom's best interests and within the scope of the power of attorney.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
