Glossary

Power of Sale

In one sentence

A clause allowing a lender to foreclose and sell property without a court proceeding, common under deeds of trust.

The longer version

Power-of-sale provisions enable non-judicial foreclosure: the trustee can sell the property after notice and a waiting period, without a lawsuit. It makes foreclosure faster and cheaper than the judicial route where state law permits it.

The availability of power-of-sale foreclosure is a meaningful factor in a lender's recovery timeline and is set by the security instrument and state law.

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