A mortgage borrower may not always be able to manage their account directly. In those situations, a Power of Attorney (POA) can allow a trusted individual to act on the homeowner’s behalf.
At Shellpoint, we understand that life circumstances can change unexpectedly. If you have questions about how POA might work for your loan or account, we’re here to help. You can contact us directly for assistance.
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What Is Power of Attorney?
Power of Attorney is a legal document that authorizes one person to act for another in certain financial or legal matters. The individual granting the authority is known as the principal, while the person receiving that authority is called the agent or attorney-in-fact.
Documentation Requirements
Before Shellpoint can work with an agent acting under a Power of Attorney, certain documents may be required, including:
- A valid, properly executed POA document.
- Language within the POA that clearly grants authority over mortgage or real estate matters.
- A durable POA, when applicable. Unlike some other POAs, a durable POA generally remains in effect even if the principal becomes incapacitated.
- Additional documents to verify the borrower’s status when necessary, such as proof of incapacity or other supporting records.
Documentation requirements can vary based on the circumstances, the laws in your state and the action being requested.
Keep in Mind
The authority granted by the POA ends when the principal dies.
How a Power of Attorney May Be Used
Depending on the authority granted in the document, an agent may be able to assist with a variety of mortgage-related responsibilities, including:
Managing Mortgage Payments
An agent may make payments, establish recurring payment arrangements or address account concerns on behalf of the borrower.
Completing Loss Mitigation Activities
If the borrower is experiencing financial hardship, an agent may help gather and submit information for available assistance programs, repayment options or forbearance requests.
Handling Loan Modification Requests
Agents may be able to provide documentation, communicate with the servicer and assist with the loan modification process when authorized to do so.
Responding to Default or Foreclosure-Related Notices
A properly authorized agent may be able to review correspondence, request payoff or reinstatement information and explore options intended to help avoid foreclosure.
Contact Shellpoint
If you have questions about using a Power of Attorney for a mortgage account, Shellpoint is here to help. Contact our customer service team to learn more about documentation requirements and your available options.