Thursday, June 2, 2011


I receive many calls asking if we can close a HECM Reverse Mortgage with a Power of Attorney (POA). The answer is yes but we have to establish a few things along the way.

A Power of Attorney can only be used if the homeowner is physically unable to sign the closing papers, documented by a letter from a physician or mentally incapable of signing the closing papers, documented by a letter from a physician.

The Power of Attorney has to contain specific verbiage and it must also be established that the Senior was of sound mind at the time the POA was given. Many Senior's did POA years ago and family may not be able to find the physician who was treating them at that time to get a letter of competency. If your parent has alzhiemers in 2011 AND you are trying to do a Reverse Mortgage AND POA was given in 1995 AND you cannot find the physician who was treating them at that time there is no option to do a Reverse Mortgage. In this scenario the parent is incompetent today and we cannot prove competency at the time the POA was written.

(If you having aging parents who gave you power of attorney many years ago, you may want to check into having that re-worked now, while they are of sound mind and also get a letter of competency from their physician to hold on file.)

In the past, I have referred my family and friends to Bailey & Holliman, Estate Planning Law Firm. They specialize in Elder Law, Asset Protection and Estate Planning. You may reach Steve or John at 205-663-0281, or . A couple times a month they have free seminars to explain what you need and what they can do with your specific circumstance. They also help with VA benefits for the Veteran and Spouse even if you have been told you don't qualify or have been turned down in the past.

As always, if you need a HECM Reverse Mortgage in Alabama, Valerie Springer would be honored to answer your questions and help you with your financing. 205-995-7283 x 305

My name is Valerie Springer nmls 198479, Home Mortgage Expert and writer for Ask Val in Birmingham, Alabama. You may contact me by email at or call 205-314-4775..