Don't Be Too Sure of Power of Attorney in Texas
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 for real estate has never been cut-and-dried. People normally have a general power of attorney. The title company forces them to change it to a real estate specific power of attorney.
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.
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.
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.
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.
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 havent called the Texas Department of Insurance, but I can take a wild guess as to what is going on. Huge litigation between family members, and the insurance companies have had enough.
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.
This is obvious, right? I hear you saying, Tell me something I dont know. Well hang in there partner.
A Power of Attorney for real estate has never been cut-and-dried. People normally have a general power of attorney. The title company forces them to change it to a real estate specific power of attorney.
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.
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.
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.
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.
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 havent called the Texas Department of Insurance, but I can take a wild guess as to what is going on. Huge litigation between family members, and the insurance companies have had enough.
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.
About the Author:
View mountains of information pertaining to the Texas reverse mortage by letting your index finger do the walking. Also, get questions answered about the Texas reverse mortgage here.
posted by Credit Counseling at
1:12 PM
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