Power Of Sale


DEFINITION of 'Power Of Sale'

A clause written into a mortgage authorizing the mortgagee (lender) to sell the property in the event of default, in order to repay the mortgage debt. As a mortgage term, power of sale is equivalent to the term foreclosure.


The power of sale is language added to a mortgage document that allows the lender to sell the property if the mortgage payments are not met, thereby permitting the lender to repay the mortgage debt. A property that is foreclosed is sold by the lender (usually a bank) in order to recover losses incurred by the loan default.

In addition to a mortgage term, power of sale also refers to the power expressed or implied in a trust agreement permitting the trustee to sell the investments comprising the trust.

  1. Foreclosure - FCL

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  2. Mortgage

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  3. Delinquent Mortgage

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  4. Deficiency Judgment

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  5. Decree Of Foreclosure And Sale

    A declaration made by a court indicating that a piece of property ...
  6. Encumbrance

    A claim against a property by a party that is not the owner. ...
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