Don't Be Too Sure of Power of Attorney in Texas
Just because something is crystal-clear to one individual, doesnt necessarily mean it will make any kind of sense to another.
This is obvious, right? I hear you saying, Tell me something I dont know. Well hang in there partner.
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.
Its a little bit of work, but it all works out in the end.
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.
The purpose of the reverse was to build a room addition on the home for a live-in nurse for mom. All three people are on title to the home.
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?
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.
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.
Currently there does not appear to be a practical way out of this pickle, and that means serious trouble for my borrowers-to-be. I hope it works out, but for now the conclusion is a mystery.
This is obvious, right? I hear you saying, Tell me something I dont know. Well hang in there partner.
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.
Its a little bit of work, but it all works out in the end.
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.
The purpose of the reverse was to build a room addition on the home for a live-in nurse for mom. All three people are on title to the home.
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?
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.
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.
Currently there does not appear to be a practical way out of this pickle, and that means serious trouble for my borrowers-to-be. I hope it works out, but for now the conclusion is a mystery.
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View mountains of information pertaining to the Texas reverse mortage by clicking here. Also, you can have your answers about the Texas reverse mortgage here.
posted by Debt Consolidation Loan at
12:32 PM
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