What Is By Power Of Sale?
A foreclosure by power of sale is one in which the property is sold by the mortgage holder such as a bank or other lending institute, but is sold without the supervision of the court. Today, many states across the nation allow this type of sale with proceeds from the sale going first to the mortgage lender and then to other lien holders.
The states that allow foreclosure by Power of Sale include Alabama, Alaska, Arizona, California, Colorado, the District of Columbia, Georgia, Hawaii, Idaho, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, North Carolina, Oregon, Rhode Island, South Dakota, Tennessee, Texas, Utah, Washington, West Virginia and Wyoming.
The advantages of a Power of Sale may not require much court intervention, but can be subject to judicial review somewhere in the process, such as if there are issues to do with the title that need resolved by the court which may include defects in the deed or the division of the monies for various lien holders.
A foreclosure power of sale can only be accomplished if the mortgage is not in the form of an absolute deed.
In most states, in order for a foreclosure by power of sale can proceed is that a deed of trust is required to conduct a foreclosure by power of sale. The deed of trust will be held by a trustee and the trustee will conduct the sale of the property. The trustee does not determine if the foreclosure will occur but will foreclosure on the property when instructed by the mortgage holder.
If you live in state, in which foreclosure by power of sale you may wish to talk with a foreclosure attorney
or a real estate attorney
, as there are several cases fails to comply with the notice and hearing requirements of the Fourteenth Amendment of the U. S. Constitution.