In a nonjudicial foreclosure state, a trustee mails statutory notice, advertises the sale, and auctions the property under a power-of-sale provision after borrower default. Which security instrument is the trustee most likely enforcing?
Correct Answer
B) A deed of trust containing a power of sale
A deed of trust commonly authorizes a trustee to conduct a sale under a power-of-sale provision, which is why it is frequently used in nonjudicial foreclosure systems. The trustee is acting under the deed of trust rather than under the seller's deed or a consumer disclosure form.
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