I recently came across an ad for a property that’s for sale saying, “power of sale.” How does this differ from a traditional home sale?
Property sales due to lender foreclosure are often also referred to as a distress bank sale, or a power of sale.
A foreclosure sale is a method available to lenders, banks and non-traditional lenders to cover the unpaid mortgage. In foreclosure proceedings, the property is not being sold by the owner — rather, it is the mortgage lender that has taken action to sell the property.
In the case of a property being sold due to foreclosure, the lender may become the owner of the property and in that case may retain any profit realized from its sale. Lenders have an interest in recovering the amounts owed to them under the terms of a mortgage.
A significant difference between a foreclosure sale and a traditional