Someone who has power of attorney is allowed to execute legal documents on your behalf. This third-party is generally an actual attorney. However, it can be anyone that you authorize to hold this power. Power of attorney can protect you in the event that you are behind on your mortgage. Your lender may not be able to contact you regarding your past due mortgage payments. Legally, the person who you gave power of attorney to would have to handle that. A person who is incapacitated may have designated someone to have power of attorney. This attorney would then make legal decisions that are in the the best interests of his client. Power of attorney may be a temporary arrangement in some cases. The time at which this power is revoked should be mentioned in all documents regarding this power transfer.