In a deed of trust, which event typically triggers foreclosure by power of sale?

• A. Borrower defaults on the loan terms.
• B. Borrower fully pays off the loan.
• C. Property value increases.
• D. Borrower files for bankruptcy.

Answer: (D)

Foreclosure by power of sale is triggered by the borrower’s default on the loan terms. When the borrower misses payments or violates other promises in the loan agreement, the deed of trust gives the trustee the authority to sell the property to recover the debt, typically after required notices and any necessary acceleration. Bankruptcy filings don’t trigger foreclosure; they usually trigger an automatic stay that pauses the process, giving the borrower time to address the situation. Paying off the loan ends the debt and removes the foreclosure right, and changes in property value don’t initiate foreclosure. So the key trigger is default on the loan terms.