Final answer:
The term for the lender's right to sell the property to pay the outstanding balance of the loan when the mortgagor is in default is Power of sale.
Step-by-step explanation:
The term for the lender's right to sell the property to pay the outstanding balance of the loan when the mortgagor is in default is Power of sale. This is a legal provision that gives the lender the authority to take possession of the property and sell it to recover the amount owed. It provides the lender with a means to recoup their investment in case of default by the borrower.