I suppose I should start out by saying that just because something makes sense to you, doesnt mean it does to someone else.
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.
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 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.
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?
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.
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.
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 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.
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?
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.
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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