Reverse Mortgage Power of Attorney & Trusts MattersPosted by All Revers Mortgage on November 6th, 2018 A borrower’s home title is an essential component of a reverse mortgage transaction, and if not handled correctly, can cause for delays in the process and headaches for the borrower and the lender or title agent. The lender will gather all the essential information, but it’s good to be prepared with documentation and to be able to respond to questions about the home’s ownership, should they come up. It’s important to bear in mind that the borrower continues to own the home and hold title to the home throughout the reverse mortgage, and that any fees collected by a title agent will be included in the third-party upfront costs associated with the loan. Those fees can be financed into the loan or can be paid upfront using borrowed funds. Once the loan is approved by the reverse mortgage lender, the closing will take place either with a title agent or with an attorney, depending on the state in which the loan is being made. The process should be straightforward, but there are certain circumstances where some extra time preparing and providing the right documents will allow the borrower to move toward closing instead of being held up or stopped because something is missing from the process. Here are some ways to make the process move along as smoothly as possible. Trusts and Power of Attorney If one person does happen to be incapacitated, that person should have two doctors’ letters upfront, since almost all trusts have this requirement. Without documentation, the process can be set back. In the case where there is a Power of Attorney who is aware that the person is incapacitated, one doctor’s letter will be needed. Outstanding Liens If there is an IRS lien on the property due to unpaid taxes, could add time to the process. Deceased Titleholders Being prepared with a death certificate will help move the process along. Article Source: https://reverse.mortgage/power-of-attorney Additional Resource: https://search.aarp.org/gss/everywhere?q=Reverse%20Mortgage%20Power&intcmp=DSO-SRCH-EWHERE Like it? Share it! |