GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Power of Sale


Synonyms:foreclosure
Filed Under: financial-banking, legal-contracts, mortgages
Tags: banking, contract, legal, mortgage
 

Definition of power of sale

power of sale
1. 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   A set of legal rights that an owner has regarding a property.
  • default   When a borrower fails to fulfill the obligations of a loan or lease.
  • forbearance   Delaying foreclosure, usually because the borrower has arranged to pay the amount in arrears.
  • foreclosure   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   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   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   The taking back of property after a borrower has stopped making payments.

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