Don't Be Too Sure of Power of Attorney in Texas
We all know that everyone hears things differently. That being said, one person may understand a concept that another does not.
Ill bet you think that I just made a common knowledge statement. You just stated the obvious cowboy, give me something original.
A Power of Attorney has never been straightforward in the real estate business. Typically, an individual will have a general power of attorney, and the title company will make the person switch it to a power of attorney that is exclusively for real estate.
Its a little bit of work, but it all works out in the end.
I had a borrower come to me to get a reverse mortgage in the last several weeks. The borrower was comprised of husband and wife, and mom. The wifes brother has power of attorney for mom, who suffers from dementia.
On the title are the husband and wife, and of course, mom. The reason for the reverse mortgage was to fix the homes foundation, and to bring in a part time nurse for mom.
From the outside looking in it seemed like a done deal. Not so. The Texas Department of Insurance does not recognize a power of attorney for the purpose of a mortgage.
Now, you have to ask the question, what is the point of the power of attorney in the first place? This is a legal document designed such to accomplish legal matters just as these folks are trying do.
To the insurance big-wigs in Texas, issuing title insurance as in the example above wont wash. It doesnt seem fair, but there it is.
I dont think it takes a rocket scientist to understand whats going on. Im guessing were seeing a rash of lawsuits between siblings and the title companies issuing title insurance are done with it.
A power of attorney with a legal guardianship wont even make them happy.
There does not seem to be a viable solution to the problem. This is a serious issue for my would-be borrowers. How it works itself out remains to be seen.
Ill bet you think that I just made a common knowledge statement. You just stated the obvious cowboy, give me something original.
A Power of Attorney has never been straightforward in the real estate business. Typically, an individual will have a general power of attorney, and the title company will make the person switch it to a power of attorney that is exclusively for real estate.
Its a little bit of work, but it all works out in the end.
I had a borrower come to me to get a reverse mortgage in the last several weeks. The borrower was comprised of husband and wife, and mom. The wifes brother has power of attorney for mom, who suffers from dementia.
On the title are the husband and wife, and of course, mom. The reason for the reverse mortgage was to fix the homes foundation, and to bring in a part time nurse for mom.
From the outside looking in it seemed like a done deal. Not so. The Texas Department of Insurance does not recognize a power of attorney for the purpose of a mortgage.
Now, you have to ask the question, what is the point of the power of attorney in the first place? This is a legal document designed such to accomplish legal matters just as these folks are trying do.
To the insurance big-wigs in Texas, issuing title insurance as in the example above wont wash. It doesnt seem fair, but there it is.
I dont think it takes a rocket scientist to understand whats going on. Im guessing were seeing a rash of lawsuits between siblings and the title companies issuing title insurance are done with it.
A power of attorney with a legal guardianship wont even make them happy.
There does not seem to be a viable solution to the problem. This is a serious issue for my would-be borrowers. How it works itself out remains to be seen.
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posted by Debt Consolidation Loan at
1:02 PM
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