Podcast Summary: "My Dad Took Out $520,000 In Mortgages In My Name Without Me Knowing"

Podcast Information:

• Title: The Ramsey Show Highlights
• Host/Author: Ramsey Network
• Description: A quick, daily dose of advice on life and money in under ten minutes. Features experts like Dave Ramsey, Ken Coleman, Rachel Cruze, Dr. John Delony, George Kamel, and Jade Warshaw. Delivered seven days a week.
• Episode: My Dad Took Out $520,000 In Mortgages In My Name Without Me Knowing
• Release Date: June 12, 2025

1. Introduction to the Caller’s Predicament

At 00:11, a distressed caller reaches out to "The Ramsey Show Highlights" with a troubling financial situation. She shares that her father passed away in July of the previous year. Fifteen years prior, while backpacking, she and her father established a power of attorney to safeguard her finances during her travels, especially after experiencing theft in New Zealand.

Caller’s Statement:

"What I didn't know was that over the last 15 years, he had taken out about $520,000 worth of high-interest mortgages in my name." (00:11)

2. Unveiling the Financial Fraud

The advisors quickly identify the severity of the situation. At 00:37, Advisor 2 responds:

"That feels like fraud to me." (00:37)

The caller elaborates that her father utilized her power of attorney to secure approximately $520,000 in high-interest mortgages without her knowledge. These mortgages are tied to multiple properties, all of which are currently underwater—meaning the outstanding mortgage amounts exceed the properties' valuations.

Caller’s Details:

• Total Mortgages: $520,000
• Property Example: Property valued at $75,000 with an $180,000 mortgage (06:24)
• Interest Rates: Up to 30% (04:07)

3. Legal and Financial Implications

The conversation delves into the legality of the situation. The caller mentions that initially, a lawyer advised her that the power of attorney made her father legally authorized to act on her behalf. However, she now grapples with the repercussions of his actions.

Advisor 1’s Concern:

"How upside down are you?" (04:19)

The advisors express alarm over the exorbitant interest rates and the possibility that the mortgages border on illegality due to the disproportionate loan amounts compared to property values.

Caller’s Financial Strain:

• Additional Debt: $90,000 student loan taken out recently
• Current Income: Approximately $40,000 a year part-time; anticipated increase to $60,000-$100,000 with her new license (06:18)

4. Step-by-Step Guidance from Advisors

The advisors offer a structured approach to addressing the crisis:

1. Report the Fraud:

   • Advisor 1: Emphasizes the importance of reporting the fraudulent loans to credit agencies to dispute the validity of the debts. (01:05)

2. Document and Dispute:

   • Request all documentation related to the loans, including loan applications, signature pages, and the notarized power of attorney. (05:07)

3. Legal Action:

   • Consider filing a police report to formally document the identity theft and unauthorized use of the power of attorney. (05:15)

4. Financial Assessment:

   • Evaluate the total debt and explore options like selling the underwater properties, despite their current depreciated values. (04:24)

5. Debt Management Plan:

   • Develop a comprehensive plan to manage and repay the debts, incorporating her student loans and upcoming income from her new career. (06:38)

Advisor 2’s Empathy and Advice:

"I hope you can work with your attorney to work this out." (08:27)

5. Personal Financial Struggles and Future Outlook

Beyond the immediate crisis, the caller shares her personal financial challenges. She recently completed flight school, incurring a $90,000 student loan, and is currently unemployed but optimistic about securing a well-paying job soon.

Caller’s Financial Snapshot:

• Student Loan: $90,000
• Current Employment: Unemployed, completed training last week
• Household Status: Renting, plans to buy a home were derailed by the debt crisis

The advisors encourage her to remain steadfast, drawing parallels to similar situations they've encountered and overcome.

Advisor 1’s Encouragement:

"If it makes you feel any better, I paid off 460,000 of debt. And it was terrible. But at least it was debt that I racked up." (07:53)

6. Conclusion and Final Advice

The episode concludes with the advisors reiterating the importance of legal counsel and strategic debt management. They acknowledge the emotional and financial toll on the caller and emphasize that while the path ahead is challenging, a structured approach can lead to resolution and financial recovery.

Final Takeaways:

• Legal Action: Essential for disputing fraudulent loans
• Debt Management: Critical to assess and prioritize debts
• Emotional Support: Recognizing the emotional strain and offering empathy

Notable Quotes:

• Advisor 2 (00:37): "That feels like fraud to me."
• Advisor 1 (04:19): "How upside down are you?"
• Caller (06:24): "For instance, one of them is valued at 75k and there's $180,000 mortgage."
• Advisor 1 (07:53): "If it makes you feel any better, I paid off 460,000 of debt. And it was terrible. But at least it was debt that I racked up."
• Advisor 2 (08:27): "I hope you can work with your attorney to work this out."

Key Insights:

• Power of Attorney Risks: Granting power of attorney can expose individuals to significant financial risks if not meticulously managed and legally documented.
• High-Interest Debt Dangers: Loans with exorbitant interest rates (e.g., 30%) can quickly escalate debt burdens, especially when tied to undervalued assets.
• Legal Recourse: Prompt legal action, including reporting fraud and disputing unauthorized debts, is crucial in mitigating financial damage.
• Debt Management Strategies: Comprehensive debt assessment and strategic repayment plans are essential for financial recovery, even in the face of overwhelming debt.

This episode underscores the critical importance of understanding and carefully managing legal instruments like power of attorney, as well as the necessity of vigilance against financial exploitation. The advisors provide a compassionate and structured approach to navigating such complex financial crises, offering hope and actionable steps for recovery.