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It seems that people misunderstand what a POA means. There are two types of POA, immediate, which is in effect at the time the principle signs it. Springing, which is only effective if the principle has been declared incompetent to make informed decisions. This usually needs one or two doctors to declare incompetence.
Is your Dad competent to sign paperwork? If not, the contract with the dealer should become null and void. Are you sure Dad is a cosigner and its just not that the POA can buy and sell for Dad. I know, ridiculous that brother could buy a car for a person that can't drive it but Moms POA reads:
"To acquire, grant, bargain, purchase, exchange, lease grant options to sell, and sell and convey real or personal property, tangible, or intangible, or interests therein, on such terms and conditions as my agent deems proper within or without the state of NJ."
To me the above wording is kind of broad. I could have done anything to Moms estate that would favor me in the end.
Again, I really don't understand how your brother could have bought a car in his name and not have Dad present to sign as a co-signer. Not sure how he used his POA to accomplish that. IMO your Dads POA has nothing to do with brother being able to buy a car unless the car was put in Dads name and brother co-signed as POA.
Your brother is Dads representative. As such, he should receive no personal gain while he is assigned POA. (Unless written in the POA he can receive financial compensation for the hrs of work put in) Meaning, if he is main buyer of the car, he cannot use Dads money to make the payments. That is not the responsibility of the co-signer unless the main buyer defaults on the car loan then the cosigner is responsible for payments. If brother has made Dad main buyer, then Dad would need to make the payments. But its Dads car not brothers. So it becomes part of Dads estate.
Could your brother be thinking about defaulting on the car loan so then Dad has to pick up payments? If your Dad is incompetent, I may see a lawyer and preferably the one who wrote up the POA. Even if competent, his son is using his POA fraudulently and dad can revolk it and assign someone else.
Personally, this to me sounds like attempted fraud, especially since the father apparently is going to be obligated for a debt of which he apparently knows nothing.
If someone does try this, hopefully the vehicle seller would see a red flag and not accept the arrangement.
Is there some reason the individual attempting can't commit for his/her own obligations and wants to sneak the father into commitment?