Power of Attorney & Mortgage Lending: A Complete Guide for Borrowers
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What Is a Power of Attorney?
A power of attorney can be a handy tool throughout the process of buying a home property. Here’s what you simply need to know about a power of attorney for a mortgage.
A power of attorney (POA) is a legal document that gives individuals the power to act for another person on their behalf.
The person granted this honor is known as an agent or an attorney-in-fact. The person giving out the power is known as the principal. Powers of attorney are important documents that frequently appear in real estate transactions.
Who Has Power of Attorney in a Mortgage?
The agent is the person who has power of attorney in a mortgage transaction. This can be anyone, but it’s best to choose someone you can trust to act on your behalf. Most people choose a spouse or other close relative to take on this authority.
The principal will determine the amount of authority they wish to pass on to the agent. They may be given limited or unlimited authority to decide on behalf of the principal on their property, medical care, finances, or investments. A power of attorney document automatically terminates when the specific purpose is concluded and completed.
How to Get Power of Attorney for Mortgage
When it comes to a mortgage, power of attorney documents are typically used for the following reasons:
- If it is more convenient for the agent to sign because the borrower lives far away and wants to avoid traveling back and forth
- If the borrower is out-of-town on a business trip
- When the borrower cannot sign loan documents or any other documents due to mental or physical disabilities
Requirements to Get Power of Attorney for a Mortgage Loan
Why Having Power of Attorney for Mortgage Is Important
If Other Owners Also Own the Mortgage
Suppose you signed the mortgage with other borrowers, and now you want to sell the property. With a power of attorney from each borrower, one owner can sell the property on behalf of the rest instead of going through all the hassle to sell the property as a group.
If your parents happen to give you a financial power of attorney, and now you are left to take care of one or more of them who is incapacitated, you can sell your family mortgage or property and access their accounts with a power of attorney and sign documents for them. It’s best to speak with an experienced elder law attorney before attempting this.
Where to Get Power of Attorney for Mortgage Loan in Georgia
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