yes, the deal can be transacted via POA. banks often resist, and whine and cry, and try not to respect the POA. If the bank does this, have the attorney who drafted the POA get on the phone and chew on their butt. I have doen this many times, and the banks always relent. The law requires them to honor the POA, absent a meaningful objection on their part.
if you are going to execute a new POA, do yourself a favor, and ask for bank for their favorite form. many banks have them in cookie cutter form.
Power of Attorney and Loan Documents - Posted by James Hunter
Posted by James Hunter on July 28, 2005 at 08:09:06:
Can a family who is the selling the house to another family member sign a limited power of attorney in order to sign any loan documents neccessary to sell the house. The family members live a distance. Is this a conflict of interest and how do lenders usually respond to this technique.
Re: Power of Attorney and Loan Documents - Posted by River City
Posted by River City on July 29, 2005 at 06:32:03:
Most lenders will work with a POA for a seller before working with a POA for a borrower. The problem with POAs is the people have come back after the sale claiming that they did not know that certain things were going to be signed.
If the sellers want, the closing documents can be Fed-X’d to them and a POA would not be necessary. They would need to be signed in front of a notary and Fed-X’d back. This is usually the best way to do it because then the sellers are aware of everything that is being signed. And, the sellers can also review the documents and call the lender if they have any questions.