Because of the power of sale clause in the deed of trust, the property can be sold without court action in which foreclosure type?

• A. Deed in lieu of foreclosure
• B. Mortgage foreclosure
• C. Deed of trust foreclosure
• D. Sale w/ appraisement

Answer: (C)

Non-judicial foreclosure is the idea being tested here. When a deed of trust includes a power of sale, the trustee can sell the property to satisfy the debt without going through the courts. That authority to proceed directly to sale after default is what lets the lender recover the loan through a trustee’s sale rather than a court-ordered sale. The deed of trust foreclosure uses this power of sale, making court action unnecessary. By contrast, a mortgage foreclosure requires a court process to obtain an order for sale, a deed in lieu of foreclosure is a voluntary transfer of title to the lender, and sale with appraisement isn’t the standard mechanism tied to a power of sale.