Posted by John Merchant on October 26, 2007 at 13:04:41:
The only way a property can be used as loan collateral/security is by the title owner’s giving a Deed of Trust or mortgage on the property.
So if your Mom is the owner, she’d have to give the D/T or mtg…but if she’s not presently mentally competent, then of course her document would be worthless legally.
I’d advise that your Mom see her Dr. and maybe also her lawyer and get letters from both that she IS mentally competent, then go get the loan in her name, using those professionals’ opinions to get the new loan.
If she’s not presently legally competent, then you could apply for guardianship of her estate and then get the new loan in the name of the legal guardianship.
Your lawyer can help with these matters and should be consulted.