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Why does bank require DURABLE Power of Attorney to close on LOC?

Why does bank require DURABLE Power of Attorney to close on LOC?


Old 08-03-17, 09:19 AM
Thread Starter
Join Date: May 2002
Location: Jackson, NJ
Posts: 431
Why does bank require DURABLE Power of Attorney to close on LOC?

Basically increasing my LOC at Santander bank, and it's difficult for my wife to get to the bank for closing due to major ankle surgery 3 weeks ago. Bank instructed me to have a POA drafted. I asked if they have a POA document or template, they did not, and told me to go to attorney or get a generic form signed. I found a free site and completed and printed a general POA, was able to get my wife to town hall for the clerk to notarize her signature. done deal? no. After bank being very vague, they now say I need a durable POA. I need POA for her to sign closing documents this week, nothing more. Durable POA just gives me ability to continue to sign on her behalf if she becomes incapacitated or deceased. Why does bank care about that? If she signed the actual loan document, and becomes incapacitated, I still can't sign for her, so why is it so important for bank. I went up 3 levels to the Cust. Service manager and she said they will make no exceptions. I really don't understand the need for a durable POA vs a general financial POA.
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Old 08-03-17, 09:27 AM
Shadeladie's Avatar
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Join Date: Jan 2005
Location: USA
Posts: 3,917
I'd say it's to cover their butts. Can't blame them. It shouldn't cost more than about $100 to have one made by a lawyer. Takes less than half an hour. Not sure why your reluctance.
Old 08-03-17, 10:29 AM
Thread Starter
Join Date: May 2002
Location: Jackson, NJ
Posts: 431
Shadeladie - not reluctant, just being inconvenienced. They initially told me I need a general POA. I can generate a general OR Durable POA online at no cost, it's just getting my wife to a notary is the difficult part, as she is recovering from major ankle surgery and can't walk. We had the general POA notarized, and just didn't want to inconvenience my wife to get another one notarized. Bank's explanation didn't make sense. At this point it will be just as easy (or difficult) to bring my wife to the bank branch on Saturday to sign the closing papers herself.
Old 08-03-17, 10:54 AM
Join Date: Jan 2010
Location: North East Kingdom of Vermont
Posts: 2,454
These days, everyone is on guard for identity theft.

As a Real Estate Broker, I've met up with many people who've attempted (and some succeeded) to impersonate another party, often using a new GirlFriend to an estranged Spouse, in order to cash out the value of a property.

I'd give the Bank the benefit of the doubt. They may be thinking that after 3 weeks, your Wife should be able to walk of her ankle by now.
Old 08-03-17, 03:59 PM
Join Date: Nov 2012
Location: USA
Posts: 842
I'll make a guess that the Bank is dotting "i"s and crossing "T"s.
Probably it's because post surgery medication might provide an
"under the influence issue" or "I don't remember signing this" claim from the wife.
Old 08-04-17, 07:15 AM
Join Date: Nov 2007
Location: MI
Posts: 2,561
Make sure you & wife are on the same page about what a durable POA means because revoking one can be an expensive PITA.
Old 08-04-17, 07:18 PM
Join Date: Oct 2008
Location: New England
Posts: 10,026
Pick up a wheelchair at the local RX they probably have rentals and make it easier on her. Best to just take her in to the bank as you are essentially thumbing your noses at them. After the dust settles make an appointment with the highest level officer in that bank and ask them why and why you were first told the general POA was sufficient. I agree with the reasoning others have given but the bank needs to make the process more streamline.

I know Maine is a bit different, but if I were in your shoes a bank officer would have volunteered to stop by the house. It's called customer service and they should do better.

Best to the wife and treat her to a day out.

Old 08-05-17, 01:33 AM
Join Date: Nov 2012
Location: USA
Posts: 842
Ah, something just occurred to me-
This is a letter of credit, it allows future advances.
If wife IS incapacitated at time of a future advance, then standard POA doesn't work.

Example, wife is under anesthesia, husband pulls out $20k to go to Vegas,
wife could force bank to credit her $20k because the withdrawal wasn't authorized
because the standard POA was invalid at the time of the withdrawl.

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