Power of Sale
- If loan default occurs, the mortgagee has the right to force the sale of the property without judicial proceedings.
Related Terms and Acronyms
- Bundle of Rights — Definition,
- A set of legal rights that an owner has regarding a property.
- Default — Definition,
- When a borrower fails to fulfill the obligations of a loan or lease.
- Forbearance — Definition,
- Delaying foreclosure, usually because the borrower has arranged to pay the amount in arrears.
- Foreclosure — Definition,
- The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
- Mortgage Acceleration Clause — Definition, Important,
- A provision of a loan agreement that lets a lender demand payment of the full balance under specified circumstances, such as sale of the property, default or refinancing. Not commonly used in Canada and/or Canadian lenders.
- Motivated Seller — Definition,
- A home seller who has a strong reason to sell quickly, possibly because of an upcoming relocation or an impending default on a loan.
- Repossession — Definition,
- The taking back of property after a borrower has stopped making payments.