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 (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.
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.
The husband, wife and mom are all on title. The goal was to take cash out of the home to make some home improvements and pay for medical treatment.
There didnt seem to be an issue initially, but then it reared its ugly head: Title companies no longer issue title insurance when a POA is involved. The Texas Department of Insurance put an end to this.
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.
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.
In fact, even a power of attorney with a legal guardianship wont work.
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. - 16928
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 (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.
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.
The husband, wife and mom are all on title. The goal was to take cash out of the home to make some home improvements and pay for medical treatment.
There didnt seem to be an issue initially, but then it reared its ugly head: Title companies no longer issue title insurance when a POA is involved. The Texas Department of Insurance put an end to this.
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.
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.
In fact, even a power of attorney with a legal guardianship wont work.
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. - 16928
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