Power of Sale
Power of sale is where a lender of the mortgage decides to sell the property and recover its loaned money from the borrower even without the intervention of the law or court proceedings. In this case the lender only cares about the amount that he owes towards the borrower and will sell the property just to recover his cost. Most of the time the property is sold at below the market price. There are many reasons why power of sales comes in affect. And who gives the authority to sell your home even if you don’t want to.
When we sign the terms and conditions at the time of borrowing the loan amount or home laon or mortgage in the contract there is a condition that the lender have all the right to sell dispose the property at any time without the intervention of the court.
This happens in the case when borrowers default on the payments of the mortgage and mortgage lender decides to sell the property. It is a very heartbreaking step for the home loan borrower or mortgage borrower and is also a painful decision for lender as well this decision often hurts both as house owner loses home and lender losses money. But in most cases the home owner suffers the harsh consequences. If the property is sold at higher price the surplus money goes to the Home Owner after deducting lenders loan amount.