Reverse Mortage and Power of Attorney - Bad Combo
Just because something is crystal-clear to one individual, doesnt necessarily mean it will make any kind of sense to another.
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.
A group of three (husband, wife and mom) came to me last month wanting a reverse mortgage outside of Houston. One of the borrowers (mom) was not mentally capable to sign. That being the case her son had power of attorney.
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.
The borrowers had a legal power of attorney, and it seemed like a simple transaction. Nope. Apparently the TX Dept of Insurance put the Kibosh on using POAs for mortgages purposes.
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.
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.
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.
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.
A group of three (husband, wife and mom) came to me last month wanting a reverse mortgage outside of Houston. One of the borrowers (mom) was not mentally capable to sign. That being the case her son had power of attorney.
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.
The borrowers had a legal power of attorney, and it seemed like a simple transaction. Nope. Apparently the TX Dept of Insurance put the Kibosh on using POAs for mortgages purposes.
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.
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.
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:
Get loads of info regarding the texas reverse mortgage by clicking here. Also, you can have your answers about the Texas reverse mortgage here.
posted by Debt Consolidation Loan at
1:20 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home