What is a deed of trust with a power of sale?

A deed of trust with a power of sale is a legal document used in New Hampshire residential real estate law that grants a third-party, usually a lender, the ability to foreclose on a property in the event the borrower fails to make payments. With the deed of trust, the borrower transfers title of the property to a trust, and the lender holds the property in the trust as security for the loan. The trustee of the trust holds the legal title to the property, while the borrower retains the beneficial interest in the property. The deed of trust also includes a power of sale clause which gives the trustee the power to foreclose and sell the property in the event that the borrower defaults on the loan. This occurs when the borrower fails to make payment on the loan for a certain period of time, usually three to four months. At that point, the trustee can start the foreclosure process, advertise the sale of the property, and then formally sell it at auction. The proceeds from this sale will go to the lender to repay the loan.

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What is a deed of trust with a power of sale?

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