Using a Power of Attorney for Texas Reverse Mortgage - Not!
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 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.
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.
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.
What is the reasoning behind power of attorney, anyway? It is a legally-binding document, with the intention of having certain control in legal issues, just as the persons in the example above are attempting.
In Texas, the example above doesnt make sense to insurance companies who issue title insurance. Sounds strange, but its true.
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.
Reality is, even a conservatorship as well as a power of attorney, doesnt seem to help.
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 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.
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.
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.
What is the reasoning behind power of attorney, anyway? It is a legally-binding document, with the intention of having certain control in legal issues, just as the persons in the example above are attempting.
In Texas, the example above doesnt make sense to insurance companies who issue title insurance. Sounds strange, but its true.
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.
Reality is, even a conservatorship as well as a power of attorney, doesnt seem to help.
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.
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posted by Credit Counseling at
12:32 PM
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