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A "power of sale provision" is a clause in the loan contract. In this clause, the borrower pre-authorizes the property's sale through a nonjudicial foreclosure process after a default. The sale proceeds pay off all or part of the loan balance.
Nonjudicial foreclosure, under the power-of-sale provision in the trust deed, also called a trustee's sale. [Calif. Civil Code §2924].
Nonjudicial foreclosures occur if your mortgage has a power of sale clause, and allow your mortgage company to auction off your home after a warning and waiting period. Nonjudicial foreclosures can be a faster process than judicial foreclosures as they do not involve having to go to court.
When Can Foreclosure Start? Under federal law, the servicer usually can't officially begin a foreclosure until you're more than 120 days past due on payments, subject to a few exceptions. (12 C.F.R. § 1024.41).
If the borrower does not pay the outstanding amounts (i.e. cure the default) within 30 days of the issuance of the notice of default the lender may authorize the trustee to issue a notice of sale. The sale may not take place less than 120 days from the issuance of the notice of default.
What is the foreclosure process in Washington? Washington is a ?non-judicial foreclosure? state, meaning a lender can foreclose on a property through a third party, the trustee, and not the court system.
Power of sale is a mortgage clause that permits the lender to foreclose on and sell a property in default in order to recover the remainder of the loan. This clause, which is legal in many U.S. states, allows for a foreclosure process that circumvents the courts for speedier outcomes.
The power of sale clause allows a lender to foreclose the security interest and sell the secured property if the borrower is in breach of a material obligation under the terms of the promissory note, the deed of trust, or another contract, without court proceedings.