She faked the Mom's signature both times. She had started leaving her alone all day and allowing the mom to sleep at her house at night. She then went away on vacation, and called my boyfriend and told him the mom is home alone. He went to Alabama and got his mom. She now lives with him. He went to court here in NC and got guardianship. The sister does not speak to him, and his other sister is useless. What are next steps if any, to get the reverse mortgage cancelled and to get all the money back that the sister siphoned out of the mom's accounts and the reverse mortgage? Or does anyone have ideas about what to do next?
Guardianship is a higher legal level of legal control than POA in my state, not sure about yours, but the most important thing now is safeguarding and preserving this poor woman’s assets.
Good for your boyfriend, and Good Luck to him!
Of course family is upset with boyfriend. Maybe they were all in the know. Crazy, wacky dysfunctional families! I have one too.
Forgery charges would most likely be a felony. Is the reverse mortgage maxed out? Let the lender know the situation but most likely they will not let you know specifics until they receive a subpoena from the court. Though they may shut down any further access to the funds.
A forged POA would be tough as they need to be notarized. Could be that mom signed under duress and was coerced, also illegal.
2. Specifically follow any relevant notification provisions in the mortgage, including default provisions. Invoke relevant provisions specified for fraud if there are any, and follow the notification criteria to the letter.
Advise that any funds already disbursed may have been subject to fraudulent activity, as may be any further drawdowns. Also demand that no further funds be disbursed.
The reason for potential vs. actual is b/c fraud hasn’t yet been proven, and may or may not be. BF shouldn’t be put in a defensive position before gathering all the relevant data.
3. There may also be liability on the RM’s side for failure to validate & perform the required due diligence of execution. To me that's a critical factor in RM's own possible negligence. Therefore, don’t provide specific details to the RM yet, but your BF might want to raise this issue with his attorney, especially if the RM doesn’t cooperate with a stop funds demand.
4. I have no experience with RM litigation, but it might be possible that any culpability MAY affect or negate legality of the disbursements as well as accrual of interest.
5. Another consideration is raising the issue with your BF's attorney about requesting a TRO, a temporary restraining order, preventing further disbursement of any funds by the RM holder.
6. Does your BF have proof that his mother was out of state when the mortgage documents were allegedly signed? What documentation does he have? Motel bills, gas station charges from out of state? Doctor's appointments (good validation). And is there a doctor’s certification of dementia at a stage of being unable to comprehend legal terms?
7. The fraud allegations will have to be documented and supported by proof, so data gathering is a major first step.
8. Breakdown of the funds spent would probably be necessary, presumably involving access to the sister's accounts. That may require obtaining receipts, charge slips, copies of other data, etc., as well as a court order. Thus, another question for your brother's attorney on obtaining this data.
9. There may also be a cause of action that can be pursued as a result of the need for guardianship, since the costs of the RM may have already diminished what financial assets are still available, and apparently from the mother's pension and other funds), potentially jeopardizing her future, including qualification for Medicaid.
10. Glad suggested that litigation may be costly if not accepted on a contingency basis. My guess is that any attorney taking on a fraud case is going to want periodic retainers. These aren’t the easiest cases to prove.
I’m only aware of one handled by one of the law firms for which I worked, but the firm immediately established a “Chinese wall” to sequester information on the case from everyone except the managing attorney and his immediate support staff. I suspect that extended to billings as well. Discussions often held w/I firm on legal issues couldn't occur in this situation.
I do recall at least one criminal fraud prelim exam that I covered as a court reporter, but it was for product fraud, with different standards. So my experience in this area of law is nominal and I'm only offering suggestions.
An attorney should be making these decisions, someone preferably with experience in fraud litigation.
11. Some information on fraud cases:
https://criminal.findlaw.com/criminal-charges/fraud.html
12. I have some recollection of reading of states with enhanced penalties for Elder Fraud, but don't have cites offhand.
13. AL & possibly NC venues, if fraud was still being committed after the mother was moved to NC, & if she's qualified as a NC resident.
I don't know what the criteria are now, but when I had to become a notary for work, we had to have a judge sign our application.