😳 A QUICK STORY
I had a deal come across my desk…
A father gave his son a Power of Attorney.
Simple, right?
But here’s the twist:
👉 The son had changed his name before the POA was signed
👉 The POA still showed his old name
😬 Problem…
That small detail can make the POA not work for mortgage funding
🌈 WHEN EVERYTHING GOES PERFECT
In a perfect world…
✔️ Your client says: “I have POA for my parent”
✔️ The lender is good with it
✔️ Docs get signed
✔️ Funds go out on time
🎉 Smooth funding. No stress.
🤔 WHAT REALLY HAPPENS
Most brokers already know:
👉 If a borrower lacks capacity → you need a POA
👉 If the POA is valid → you can proceed
But there’s still that feeling…
“Will the lender accept this?”
“Will the lawyer flag anything?”
So what happens?
⏳ It gets pushed down the road
➡️ “The lawyer will deal with it at funding”
🚨 WHERE DEALS FALL APART
By the time I see it…
⏰ We’re right before funding
💨 Everyone is rushing
❌ And sometimes… funding can’t happen
Because not all POAs work for mortgage transactions.
POA must:
✔️ Name the right person
✔️ Be in effect (not just written, but active)
✔️ Be properly signed and witnessed
✔️ Allow for land transactions
✔️ Have an original copy
✔️ Be used while the person is still alive
⚠️ And one big one:
👉 A Personal Directive is NOT a POA
💥 WHY THIS MATTERS
Using the wrong POA is kind of like:
✍️ Signing loan documents without authority
That can:
❌ Delay funding
❌ Break rate holds
❌ Kill the deal
✅ THE SIMPLE FIX
👉 Check the POA EARLY (before submitting or removing conditions)
Even better:
📩 Send it to me upfront
I’ll quickly tell you:
✔️ If it works for land titles
✔️ If something is missing
✔️ If we need to fix it before funding
📞 Call / Text / Email anytime
Even for a quick “will this POA work?”
Let’s keep your files smooth, funded, and on time.
—Erin
PassGo Real Estate Law