BETTER CHECK WITH THE BUYER'S MORTGAGE COMPANY. You may be thwarted.
Many agents or brokers have assisted their buyer or seller clients complete a purchase or sale of a property. Over the years, I've signed for many home buyers and one seller as their Attorney In Fact.
Inspired by a timely article by Donna Harris in her helpful article - Texas Real Estate - Do I Need to be in Town to Sign My Documents?
MORTGAGE COMPANY SURPRISE. This month, I've been unable to complete a purchase for a buyer client located in Hawaii. When the Power of Attorney document, which is signed by the buyer and recorded in the land records was approved by the mortgage company, they surprised the title attorney when they said that I, the buyer's broker, couldn't be their attorney in fact. The buyer's mortgage company requires that the POA be a disinterested party. They consider me, the Buyer's Broker, a party of interest.
Inconvenience in the extreme. The alternatives to signing for the out of town buyers by a Power of Attorney are mailing the documents (Hawaii is 2 days) to the buyers which is difficult due to the timing of funding, document preparation, distance, etc. The buyers could also retain the services of a local title office for signing, therefore incurring additional expense, inconvenience and the stress of getting the docs back to the closing office. The only sensible way for these closings is for the buyer's agent or broker to do what I've done many times and for many, many years, sign for the buyers as their attorney in fact.
The MORTGAGE COMPANY turned the ROUTINE into a BARRIER . The title attorney for this sale was as surprised as I to learn of this mortgage company limitation. The title attorney has agents closing for buyers as their POA on a regular basis. Clearly, this is a policy of this particular mortgage company.
BEWARE of mortgage company overlays or company policy that may limit the buyer's ability to complete a sale. Other mortgage company overlays that I've experienced are. . . .
1. higher than average minimum credit scores for particular mortgage instruments.
2. mortgage company policy that deducts VA lender fees from seller contribution to buyers.
3. limitations to Power of Attorney.
There are probably others that don't immediately come to mind. If any ActiveRain folks know of additional lender limitations to standard practices, please post them so we can all benefit from your experience.
I have retained the services of a local self employed non-interested party for the closing. The POA docs will go to the buyer for his signature. All should go well. However, due to the extreme inconvenience introduced by the mortgage company, the matter will not be over until closing is complete.
Needless to say, this is a question that I'll be asking of all loan officers in the future.
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