1. What does a "power of sale" provision in a deed of trust or mortgage allow a lender to do?
    

The provision enables the mortgagee to order a public sale without court decree, which is called a non-judicial foreclosure.
 

2. Describe a Notice of Default.
    

A Notice of Default is a letter from a lender to a borrower requesting the payment of past due amounts. The borrower has ninety (90) days to pay the past due amounts or foreclosure proceedings will begin.
 

3. In a non-judicial foreclosure sale, the new purchaser will receive a trustee's deed to the property. But what potential problem exists?
    

There is no guarantee that the title is clear. There may be some outstanding liens still in effect, such as a federal tax lien, real property taxes or assessments, or a valid mechanic’s lien. 
 

4. What is the main problem with a strict foreclosure? 
   
   There is no clearly established value for the property because there is no public auction. As a result, the lender's losses cannot be established.