A Power of Sale Foreclosure, also known as statutory foreclosure, is allowed by many states if the mortgage includes a “power of sale” clause. After a homeowner has defaulted on mortgage payments, the lender sends out notices demanding payments. Once an established waiting period has passed, the mortgage company itself – rather than local courts or sheriff's office – carries out a public auction. Non-judicial foreclosure auctions often proceed fairly quickly, though they may be subject to judicial review to ensure the legality of the proceedings.