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What is 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?

A. Mortgage covenant
B. Power of sale
C. Quiet possession
D. Encumbrance assurance

1 Answer

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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.

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