The right of the mortgage holder (mortgagee) to force the sale of a property without judicial proceedings, should default occur. The mortgagee does not own the property, and does not take any resulting equity.
Under Power of Sale policy, the mortgagee makes no representations or warranties in regards to the listed property. The property is sold strictly on an ‘as is’ basis.
Exclusive to the Power of Sale procedure is the ‘redemption’ provision. If included in the mortgagor’s Schedule “A”, the mortgagor who defaulted on the property has the right to bring the mortgage into ‘good standing’ by paying the arrears/penalties due. This provision must take place prior to the change of ownership on the respective property. If this action occurs, the Power of Sale does not take place.