Monday, October 13, 2008

Power(s) of Attorney for Bank-Owned Homes

If you ever have transactions that involve bank-owned homes, this is important to know. If the owner of record (the person or company whose name is on the title report) is different than the name of the seller on the sales contract or the name of the seller that is on an amend/extend to the contract, most lenders are now requiring Power(s) of Attorney allowing the various banks and loan servicers to sign the documents for the owner of record. Sometimes when a loan goes into foreclosure, it is sold repeatedly between different banks, and the buyer's lender and the title company need to know that the seller actually has the right to sell the property.

This is not a particularly difficult problem to resolve, but it often takes weeks to establish a paper trail between all the different people, banks, and loan servicing companies that have signed the various documents. Make sure everyone involved in the transaction is aware of this issue so contract dates are not missed.

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