We are going to change gears this month and talk about something other than Mechanics Liens. An issue that we have been seeing a bunch of lately is the scenario whereby corporations conduct business through the execution of Powers-of-Attorney. We generally see this concept at work in the foreclosure/REO context. Typically, the servicer of the loan has an agreement with the holder of the note to perform certain acts related to the servicing. These acts often times include, executions of Substitutions of Trustees, Deeds and Satisfactions. Personally, I have always struggled with the notion of officers delegating their responsibilities to other corporations by the use of a power-of-attorney, but the Title Underwriters point to the provisions of Chapter 55 for the legal justification for doing so.
The Relevant statutory language is listed here.