Reverse Mortgage Additional Information

Reverse Mortgage Additional Information

LEASEHOLD AND REVERSE MORTGAGES

Leasehold is a form of land tenure or property tenure where one party buys the right to occupy land or a building for a given length of time. A leasehold estate can be bought and sold on the open market.

POWER OF ATTORNEY AND REVERSE MORTGAGES

When using a power of attorney for a Reverse Mortgage, it is very important to keep in mind the following terms:

  • It must be durable
  • It must be dated prior to the application date
  • The POA must have the authority to encumber mortgage and sell the property
  • If the borrower is incompetent a doctor’s note is required. The note should include the date the Borrower became incompetent.

The very important part of dealing with a POA is documenting whether the borrower is competent or incompetent. It is important to determine this up front because it has an effect on who completes and signs certain documents and if additional documentation will be needed.

GUARDIANS AND CONSERVATORS AND REVERSE MORTGAGES

Guardians and conservators must be court appointed. A guardian is someone appointed to make decisions about living arrangements for a protected person and a conservator is someone appointed to make financial decisions for a protected person.

Competent

  • Must sign 1009 application
  • Must be counseled and sign certificate
  • May use POA for closing

Incompetent

  • Does not sign 1009 application or closing
  • Physicians stating the borrower is currently incompetent and that they were competent at the time the POA was executed
  • Acts as Guardian or Conservator