Reverse Mortage and Power of Attorney - Bad Combo
We all know that everyone hears things differently. That being said, one person may understand a concept that another does not.
Youre probably thinking, Wow! Glad I made it to this article. This character is the master of obvious statements!
A Power of Attorney (in real estate) is not an easy thing. The typical power of attorney is a general power of attorney. What happens in regards to real estate is the escrow company alters the POA to be specific to the real estate in the transaction.
Typically, the escrow company requirements are just an inconvenience. They dont normally stop the deal.
A new customer of mine, actually a married couple and mother, needed a reverse mortgage recently. It was the brother of the wife who had power of attorney for mother. Mom is mentally incapacitated and cannot sign legally.
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.
It almost begs the question, what is the heck is the purpose does a power of attorney? Afterall, without it, what is the choice for someone like my borrower above? They cant sign legally, so what do they do?
But does it make sense to insurance companies issuing title insurance on real estate? Apparently the answer is no. At least not in Texas.
Texas Department of Insurance hasnt given me any explanation, but Im smarter than the average bear. The problem is legal action amid families and the insurance companies; the guys with money are tired of it.
A power of attorney with a legal guardianship wont even make them happy.
This issue creates a grim problem for my current and future customers as there does not seem to be a viable answer in the foreseeable future. Wish me luck.
Youre probably thinking, Wow! Glad I made it to this article. This character is the master of obvious statements!
A Power of Attorney (in real estate) is not an easy thing. The typical power of attorney is a general power of attorney. What happens in regards to real estate is the escrow company alters the POA to be specific to the real estate in the transaction.
Typically, the escrow company requirements are just an inconvenience. They dont normally stop the deal.
A new customer of mine, actually a married couple and mother, needed a reverse mortgage recently. It was the brother of the wife who had power of attorney for mother. Mom is mentally incapacitated and cannot sign legally.
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.
It almost begs the question, what is the heck is the purpose does a power of attorney? Afterall, without it, what is the choice for someone like my borrower above? They cant sign legally, so what do they do?
But does it make sense to insurance companies issuing title insurance on real estate? Apparently the answer is no. At least not in Texas.
Texas Department of Insurance hasnt given me any explanation, but Im smarter than the average bear. The problem is legal action amid families and the insurance companies; the guys with money are tired of it.
A power of attorney with a legal guardianship wont even make them happy.
This issue creates a grim problem for my current and future customers as there does not seem to be a viable answer in the foreseeable future. Wish me luck.
About the Author:
View mountains of information pertaining to the Texas reverse mortage by letting your index finger do the walking. Also, you can have your many questions about the Texas Reverse mortgage answered here.
posted by Debt Consolidation Loan at
12:37 PM
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