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The legal distribution of assets and property left by someone who has died is called ‘probate.’ It is a process of law, involving government and courts, that ensures proper and legal distribution of their assets. Even if the deceased person had a legal will, probate is frequently required. In general, probate involves these steps: If a will exists, it is proven to be legal and valid, with all required signatures, witnesses and other documents. Someone is appointed — by the will, or, it not, by the probate court – to administer estate distribution. Probate-eligible estate property and assets are identified, inventories and appraised. Debts or taxes owed by the deceased are settled. Finally, remaining assets are distributed — by the will, or if no legal will exists, based on state law. When probate is required, most assets cannot be distributed until the process is complete. In the US, probate laws vary by state, and probate is not always necessary.
 

Imagine a board game player telling a friend ‘roll for me, but don’t sell anything’. Would the friend continue to roll when the player returned? Probably not. In game terms, they were granting a limited, temporary power to act on their behalf. These two concepts – range of action and effective period – also apply to legal power-of-attorney arrangements. Limiting the range of action — ‘roll but don’t play’ in the game, or ‘healthcare but not financial decisions’ in the legal system, creates limited or ‘special’ power of attorney. An agent granted the right to make any personal or business decision, by contrast, has general power of attorney – it’s like saying ‘roll, play, sell properties, or anything else’ in a game. Here a few common types of power of attorney: Temporary periods of authorization are called temporary power of attorney. Common power of attorney authorizes the agent until the grantor is incapacitated. Durable power lasts beyond incapacitation — ‘play my turn even if I can’t come back’ — while ‘springing’ power of attorney starts with incapacitation — ‘play my piece if I can’t come back.’ Power of attorney can have great impact, and legal advice may be required.
 

What is a power of attorney and how does it work? To keep a board game running while one player takes a break, that player could say to another ‘roll the dice and move for me.’ They are granting the second player power to act fully within the game rules. This is basically what ‘general power of attorney’ means in the rules of the legal system – authorization for one person to act legally on behalf of another person. If the player says ‘roll but don’t move’, that would be called ‘limited power’; limited legal power-of-attorney might cover only healthcare decisions, or only property decisions. While some legal jurisdictions accept spoken power-of-attorney decisions like this game-play example, other jurisdictions, or institutions like banks or hospitals, frequently require written or even notarized documents. The person granting this power must have the mental capacity to understand their decision.
 

In a foreclosure, a lender takes legal possession of collateralized property from a borrower who has not met the financial conditions of the loan. Foreclosure defense is the term for legal strategies to stall or stop foreclosure. Foreclosure defense strategies may include: Modifying mortgage terms in negotiations with the lender. Challenging ownership records; foreclosure requires ‘perfection’ in the chain of title on the property, and errors or lapses in that chain may affect foreclosure proceedings. Challenging promissory notes when loan servicing has been sold; the note may be owned by someone other than the lender. Owner bankruptcy, which may require additional proof of the lender’s right to foreclose. Legal attack on lender business practices in court. As loans, laws and strategies vary by state, legal advice is the best way to understand how foreclosure defense applies to a particular situation.
 

A foreclosure is essentially a legally-forced change in possession, where a lender seizes collateralized property – such as a home – when a borrower is unable to pay the loan. While laws vary by state, borrowers typically have a ‘period of redemption’ to pay loan, interest and foreclosure costs to avoid losing the property. After this period, the lender can exercise their right to take over ownership of the property that was used as loan collateral, and sell it to recover their loan. The borrower is still responsible for any balance due if the sale price is less than the loan. Foreclosure is complex and costly, and nearly always involves legal proceedings.
 

Deed In Lieu’ is a common short-hand term for this situation: a borrower can’t make loan payments, and hands over their deed to the property instead, so that the lender does not have to take the home. The full phrase is ‘deed in lieu of foreclosure’ — they’re surrendering the deed so both parties can avoid the cost and impact of foreclosure. It is faster, generally less expensive for the lender, and generally less damaging to the borrower’s credit. Deed in lieu must be voluntary for both parties. The lender must agree that the deed value meets the loan amount owed – otherwise, they might have the right to seek additional payments through a deficiency judgement. Deed in lieu is typically a last resort, when losing the property has become inevitable.