Though it is advised to consult with your family attorney or other trusted legal adviser first, the idea of having an updated power-of-attorney along with your other important financial papers is an essential part of responsible living today.
Each of the states has its own laws about how to execute a power of attorney and there are scores of variations, but the three basic types of Power of Attorney are:

Limited/specific Power-of-Attorney – non-durable.
This is used for a specific transactions such as selling or buying real estate banking or the sale of stocks.

General Power-of-Attorney-durable until death or revoked. This POA is used to cover any or all occurrences (except the decision pertaining to health) where you may be incapacitated and you want to give complete authority to your designee.

Springing Power-of-Attorney €“ durable until death or revoked. This POA is generally granted to a physician while you are aware of your decision-making processes in the event of a change in your physical or mental condition, which would render you incapacitated.

Creating a Power-of-Attorney does not limit any right you have for making decisions. It simply delegates another person that can also make decisions , should you not be able to. You might think of this as sharing your decision making process.

The attached link Power of Attorney will give go more details on some of the specific uses of the differing types of Power of Attorney authorizations.

This post is about making you aware and of reminding you of the importance of having a prepared Power of Attorney if the need should ever strike. I am a REALTOR not an attorney and I am not giving legal advice here, simply to try to create an awareness of our needs in our current lifestyles.

Have you noticed how willing our state legislators are to spending the tax revenues? Rhetorical question of course. How could one help but notice? The better question to ask is on what? It isnt like our roads and infrastructure are forefront on their 1st page of discretionary spending.

If the funding was for maintaining streets and bridges, thats one thing but since it isnt sexy, those funds are appropriated for things in districts that hallmark the legislators image. And what would that look like you might wonder. Well we are all wondering, but we can be sure the funds are going there because they certainly are not going to streets and bridges and other aging and updated infrastructure.

If the state revenue bonds were not enough, the federal system might be considered worse. Its those little things called earmarks that seem to take from the roads named Peter and give to the bridges to nowhere name Paul.

When there are complaints that there isnt enough money being spent on roads, Congress with its infinite wisdom hopes to include another 5 cents to the gasoline tax. For Californians, dont expect much if they do this. You see California is a what is called in Congress as a donor state. That means that for every dollar, we put into the federal system, we get 90 cents back.

The state legislature puts so much emphasis on transit and environmental improvements that less than half of the 20 Billion in State Transportation Bond funds will ever end up on the roads.

It seems clear, that unless we want to tax more on gasoline both at the state and federal level, the only other choice will be to charge tolls on the new roads. There is at least one advantage in that the funds raised would have to go to local projects instead of being spent through every legislative district in the state.

Another benefit of this tolling approach is that the revenues collected goes first to a guaranteed maintenance funding. The investors that put the money up require the operators to make its 1st priority the ongoing maintenance from where the tool comes from. That’s even before applying the toll revenue to pay the debt service on the toll revenue bonds.

We need to increase pressure on the state legislature to pass the laws needed to create these new toll roads. Otherwise the overcrowding continue and a gas tax may still get imposed.

They reiterated that more than 46,00 home were in foreclosure and that there were 76,732 more mortgages that are currently delinquent.

Witnesses warned the banking committee that the numbers would be rising as the loan adjustments take place on the adjustable loans. They advised that Homeowners appeared paralyzed and dont understand that they may have some options. They are not contacting their lenders and some of the lenders are saying that they cant reach the consumers to even discuss the explosive issue.

There is an anticipated jump widely forecasted in the 4th quarter of this year that will continue through the fall of 2008.

State agencies also have a role to play and have been encouraging the lenders to work out better loan deals with the potentially delinquent borrows.

There are several bills being considered but one in particular calls for lenders when writing new loans to determine if the borrower can afford to pay back the credits when they reset at higher rates and not just at the initial rates.

Advocacy groups have also called for the immediate creation of a fund to assist the affected homeowners in certain situations and also for greater oversight of the mortgage lenders.

There may also be some state funding that can be squeezed from some of the regulatory agencies budgets to help insure that the borrowers get needed counseling.

Lenders today are well aware of the situation some homeowners find themselves in

The lenders concerns are three fold.

1. The Lender wants to see what the Homeowner has agreed to with the purchaser.

This can be a difficult negotiation but the Lender wants to see that the homeowner is not walking away with any cash and that the Buyer has agreed to pay all costs associated with the transaction. The net cash to seller in the purchase agreement must be the amount of the short Pay to the lender. The Lender will also require a Preliminary HUD-1 Statement. If Escrow wont do this, then Agent has to.

2. The Lender wants an accurate picture of what is the property worth in todays market.

Though it is not required, when an agents prepares the Comparative Market Analysis, if an agent is aggressive with this, they would also hire and pay for a pre-appraisal on the property. If there is deferred maintenance or other repair issues on the property, the lender also wants to see a Contractors bid for the repairs.

3. What is the accurate situation with the homeowner and proof that the homeowner is in dire need of assistance.

Provide as much information about the situation with the homeowner and proof that they are insolvent and that they they have no other source of income or assets to repay the loan. This will entail a current and complete financial picture that must also include a hardship letter that explains the homeowners situation and reasons why the lender should approve the short sale.

The following is a list of Documentation that must be completed prior to getting lender approval.

• Hardship letter from the Homeowner
• Completed Financial Statements
• Documents proving the Hardship
• IRS tax Returns for 2 years
• Income statements or pay stubs for past 2 months.
• 4 months worth of Bank Statements
• Copy of the Listing Agreement
• A Sales Contract from the Buyer
• Preliminary HUD-1
• Marketing History by the Agent
• Subordination of any Junior Lien Holders

If the Lender Agrees to a Short Sale, they will expect closing to take place prior to 45 days. 30 days is most preferred by many Lenders. If the transaction does not close on time, they will withdraw their offer. It is essential that the Lender see a complete picture prior to granting approval. If there are any substantive changes, they are not obligated too complete this sale and will likely withdraw. No surprises will be accepted. Best to have every little detail agreed to in advance, especially with the Buyer and the Seller.

As A Buyer, you will be given an agreement called a Buyers Agency Agreement to sign. Agency is one of the more arcane aspects of real estate law in California.

There are several types of agreements out there , so be sure to read and understand what you are signing and if in any doubt,seek counsel from your own legal adviser. For my purposes, I will discuss and illustrate the California Association of REALTORS standard form of Agency Relationships Disclosure.

When you enter into a discussion with any real estate agent regarding a specific piece or pieces of real property ( real estate ), discuss prices on properties, term of any sale or tentative interest in acquiring or just about anything to do with property or even a possible purchase, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction. Please read this paragraph again. The laws in the state of California are very clear on this aspect of agency. The California law states that the relationship MUST be clearly established before proceeding in the discussion.

There are several sections to our California Association of REALTORS Agency Disclosure Statement.

Sellers Agent A sellers agent under a signed listing agreement with the Seller acts as the agent for the Seller only.

A sellers agent or a subagent of that agent has the following affirmative obligations To the Seller : A fiduciaryA fiduciary duty of utmost care, integrity,honest and loyalty in dealings with the Seller.

To the Buyer and the Seller : A diligent excersise of reasonable skill and care in the performance of the agents duties. A duty of honest and fair dealing and good faith. A duty to disclose all facts know to the agent materially affecting the value or desireability of the property that are not known to, or within the diligent attention and observation of the parties.

An Agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.

Buyers Agent A selling agent can, with the Buyers consent, agree to act as agent for the Buyer Only. In these situations, the Agent is not the Sellers Agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller.

An agent acting only for the Buyer has the following affirmative obligations: To the Buyer : A Fiduciary duty of utmost care, integrity,honesty and loyalty in dealings with the Buyer. To the Buyer and the Seller : A duty of honest and fair dealing and good faith. A duty to disclose all facts know to the agent materially affecting the value of the property that are not know to or with in the diligent attention and observation of, the parties.

An agent is not obligated to reveal to either party any confidential information obtained from the the other party that does not involve the affirmative duties set forth above.

Agent Representing Both Seller Buyer A real estate agent , either acting directly or through one or more associate licensees, can legally be the agent of both Seller and Buyer in a transaction,but only with the knowledge and consent of both Seller and Buyer.

In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer: A fiduciary duty of utmost acre, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer, In representing both Seller and Buyer, the agent may not, without the express permission of the respective party, disclose to the other party that seller will accept a price less than the listing price or that the Buyer will pay a price greater tan the the price offered.

The above duties of the agent in a real estate transaction do not relieve a Seller or a Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to to advise about real estate. If Legal or Tax advice is desired, consult a competent professional.

Throughout your real estate transaction you may receive more than one disclosure form,depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship too present you with this disclosure form. You should read it contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction.

However you may be represented you will need to sign a form that contains the above content. Read it carefully. You also need to understand that you may be requested to sign this form several times during the transaction.

So why then do you need Agency? It establishes the fiduciary between you and the person representing you.