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.
Common questions
- What is a power of sale clause?
- A provision, common in deeds of trust, allowing the lender to sell the property through a non-judicial foreclosure without a court proceeding.
- Which states allow power of sale foreclosure?
- Many states, including those where deeds of trust are standard. Each state sets its own notice, timing and procedural requirements.
- Is power of sale faster than judicial foreclosure?
- Generally yes, because it follows a statutory notice process rather than litigation, although timing varies by state.
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