Power of Sale (POS)
As the name implies, power of sale means the lender has the power to force the sale of the property. This power is granted to them in the loan contract, and almost always comes into play because the borrower has not made the loan payments on time.
In a power of sale, the lender does not become the owner of the property at any time. Rather, the sale is forced, and the proceeds are used to pay off the loan plus any additional expenses. Any remainder goes to the former owner.
(The phrasepower of saleis sometimes used to refer to a home that is being sold under power of sale. For example, "we bought a power of sale in Mississauga".)
Contrast with foreclosure.