What is a power of sale and how does it relate to mortgages?

• A. A mortgage remedy that requires court proceedings to sell the property after default.
• B. A mortgage remedy allowing the lender to convey title to the property to a purchaser without court proceedings, where permitted.
• C. A tenant eviction procedure.
• D. A provision that allows the lender to seize personal property only, not real estate.

Answer: (B)

Power of sale is a mortgage remedy that lets the lender sell the property securing the loan and transfer title to a purchaser without going through court proceedings, as long as the applicable statute allows it. This provides a quicker path to recover the loan balance after default compared to requiring judicial foreclosure. The process still involves following statutory procedures and proper notice, and it applies to real estate, not personal property. Other options describe court-ordered foreclosure, tenant eviction, or seizing only personal property, which do not match the power-of-sale concept.