Signing over the deeds of their house is one of the most difficult steps that homeowners facing foreclosure have ever taken. A scammer just has been gifted with a very easy target when the ownership of the house is transferred and the owner loses total control of the property. In like manner it is also equally serious and dangerous decision to sign over by way of a power of attorney to another person to represent and stand on behalf on homeowners.
When homeowners experiencing financial problems and are on the verge of being sued for foreclosure have to be very careful and cautious to who they turn to for help and before they get about signing a power of attorney. In some cases the property in question will have to be sold to an investor or Realtor via short sale. The most important that the homeowners should ask themselves is what the third party involved would do in as regards taking the lawsuit of the foreclosure and other relating issues and also if they can assist the homeowners to can care of handling this task on their own and they wouldn’t have to use the power of attorney to empower attorney to represent them in the case of their foreclosed house.
It is therefore considered wise to engage the service of a real estate or contract attorney to help in terms of the deals with the court and also with the investor or Realtor desiring the short sale. In this way the homeowners get to know who they have hired and most importantly that the hired attorney is competent to handle the legal issues relating to the foreclosure. The idea of giving a third party power over the home is never a good one and that is an advantage that is bond to be taken.
It is always to a very good deal to sign over the power of your house but there has to be guaranteed protection of the homeowners in the deal. The provision is there in the deal to be able to revoke the decisions of the represent attorney and the homeowners will have enough power to rescind any bad decision made by the attorney. Nonetheless to state the facts, it is the third party who stands to benefit the most for he has power of the house and as such can decide the fate of the house.
A major risk involved in the deal is that the power of attorney could be used to sign over the property into their names. And when this happens there is no way the homeowner can defends themselves because the ownership of the property have been transferred to the name of someone else as stated in their power of attorney so they thus lose total control of their property. And that is why it is very important for home owners to be wary of the kind of power they are signing away and how such powers can be used.
The issue of giving power over your home during a foreclosure should never be taken lightly. Promises like “I am going to help you” and terms like “trust me” should never be taken too seriously. Protect your homes.