Which method of foreclosure is preferred by lenders?

The preference for the power of sale method of foreclosure by lenders primarily stems from its efficiency and speed. In a power of sale foreclosure, the lender has the authority to sell the property without going through the court system. This process is typically faster and less expensive compared to judicial foreclosure, where the court must be involved, potentially prolonging the time frame for the foreclosure to be finalized.

This method allows lenders to expedite the recovery of their investment when a borrower defaults on their mortgage. Because it bypasses the judicial process, it often leads to a quicker resolution, allowing the lender to take possession of the property and resell it sooner. The reduced costs and faster turnaround times make the power of sale method more appealing for lenders compared to other options like short sales or bankruptcy proceedings, which can involve more complexities and delays in the resolution process.