Posted by Joe on April 26, 2006 at 14:58:55:
Depending on the lender, it may or may not be required. Some lenders will deal with you if you have an authorization release. Some will only deal if you have a power of atty. I’ve seen plenty of people recommend avoiding this lender problem by just always getting a power of atty.
If he’s doing a short sale, then he owes more than the property is worth. So, why would your friend care what he does with the deed anyhow? Anyone that is purchasing the property will see the encumbrances that have to be paid off anyhow. Unless the guy seems like a sleazeball, or I’m missing something else.