Power of Sale
POWER OF SALE
A clause commonly inserted in a mortgage and deed of trust that grants the creditor or trustee the right and authority, upon default in the payment of the debt, to advertise and sell the property at public auction, without resorting to a court for authorization to do so.
Once the creditor is paid out of the net proceeds, the property is transferred by deed to the purchaser, and the surplus, if any, is returned to the debtor. The debtor is thereby completely divested of any interest in the property and has no subsequent right of redemption—recovery of property by paying the mortgage debt in full.
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Lien , LIEN
LIEN (Heb. שִׁעְבּוּד נְכָסִים, Shibud Nekhasim).
The Concept
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The power of a state to acquire title to property for which there is no owner.
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Power of Sale