What clause must be included in a mortgage to allow for non-judicial foreclosure?

The inclusion of a power of sale clause in a mortgage is essential for enabling non-judicial foreclosure. This clause grants the lender the right to sell the property without court proceedings in the event of a default on the loan. The power of sale establishes a predetermined process for the sale of the property, often through a public auction, and typically requires the lender to provide notice to the borrower and the public prior to the sale.

In non-judicial foreclosure scenarios, this process is designed to be more expedited than judicial foreclosures, which require court involvement and can be prolonged through legal proceedings. The power of sale clause simplifies the foreclosure process, allowing lenders to recover their loans more efficiently when borrowers fail to meet their obligations, thus benefiting the lender while also providing a clear and defined path for borrowers regarding the consequences of default.

The other options, while related to aspects of loan agreements and foreclosure processes, do not specifically facilitate non-judicial foreclosures. Hence, the definition and functionality of the power of sale clause make it clear why it is the correct choice in this context.