Question

A provision in a security instrument that gives the lender or its representative (e.g., a trustee) the authority to sell without judicial foreclosure a property in default.

A. Alienation clause
B. Power of sale
C. Satisfaction of mortgage
D. Encumbrance

Answer 1

The correct answer is B. Power of sale. A power of sale is a provision in a security instrument that allows the lender to sell the property without going through a judicial foreclosure process.

Step-by-step explanation:

The correct answer is B. Power of sale.

A power of sale is a provision in a security instrument, such as a mortgage or deed of trust, that allows the lender or its representative to sell the property without going through a judicial foreclosure process. This provision gives the lender the authority to sell the property if the borrower defaults on their loan.

For example, if a homeowner fails to make their mortgage payments, the lender can exercise their power of sale and sell the property through a public auction.