Can I Refinance With Power of Attorney?

By Teo Spengler

When you are named as a financial agent under a general power of attorney, you have the right to undertake any action the principal could undertake herself. This includes applying for bank loans on her behalf or refinancing the loans she already holds.

Financial POA

A power of attorney, or POA, is a legal document used by an individual to appoint an agent to act on his behalf in either financial or medical matters. The principal can limit the agent's authority in the document, but general financial powers of attorney confer broad powers to do anything the principal can legally do himself. A POA agent is under a legal obligation to act in the best interests of the principal.

Refinancing Mortgage

Unless the terms of the financial POA document limit your authority, you can refinance your principal's mortgage if you determine that it is in her best interest to do so. You will have to establish to the satisfaction of the lending institution that you hold legal authority to act on the borrower's behalf.

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Assuming a Mortgage With Power of Attorney

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Can a Person with My Power of Attorney Get Sued if a Credit Card Company Sues Me?

With a power of attorney, the document's creator, called a principal, gives authority to someone else, called his agent, to act on his behalf. The agent may have broad permission to access the principal's finances and even make charges on his credit card. However, agents are not typically personally liable for a principal's credit card debt.

Power of Attorney Rights

The power of attorney doesn't so much grant rights as powers. Under a power of attorney arrangement, one person -- known as the principal -- grants an agent the power to perform legal acts on his behalf. This grant of authority may be broad or narrow, and it may be of temporary or indefinite duration. A power of attorney must be in writing and signed by the principal to be valid.

Power of Attorney Rules in California

A power of attorney is a legal device that authorizes one person to perform legal acts -- such as signing a consent to medical treatment -- on behalf of another person. The person who grants the authority is known as the principal, and the person who exercises it is known as the agent or attorney-in-fact. California's power of attorney laws are located in sections 4000 through 4545 of the California Probate Code.

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