In real estate finance, a power of sale is a provision in a mortgage or deed of trust that authorizes the mortgagee or trustee to sell the property if the borrower defaults on the loan. This clause provides a contractual remedy for the lender without requiring court action in some jurisdictions.
When a power of sale is exercised, the property may be sold to satisfy the outstanding debt, subject to statutory procedures and notice requirements. This method of foreclosure is often faster and less costly than judicial foreclosure, depending on state law.
