What is a Power of Sale Foreclosure?

A Power of Sale Foreclosure, also known as statutory foreclosure, is allowed by many states if the mortgage includes a "power of sale" clause. After a homeowner has defaulted on mortgage payments, the lender sends out notices demanding payments. Once an established waiting period has passed, the mortgage company itself - rather than local courts or sheriff's office - carries out a public auction. Non-judicial foreclosure auctions often proceed fairly quickly, though they may be subject to judicial review to ensure the legality of the proceedings.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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