A more thorough explanation:

Nonjudicial foreclosure

Nonjudicial foreclosure is a legal process in which a lender can sell a property without going to court. This process is allowed in some states and is typically faster and less expensive than a judicial foreclosure.

For example, in California, nonjudicial foreclosure is allowed if the deed of trust includes a power of sale clause. This clause gives the lender the right to sell the property if the borrower defaults on the loan. The lender must follow specific procedures, such as sending a notice of default to the borrower and recording a notice of sale with the county recorder's office. If the borrower does not cure the default, the property can be sold at a public auction.

In Arizona, nonjudicial foreclosure is also allowed if the deed of trust includes a power of sale clause. The lender must follow similar procedures, such as sending a notice of default and recording a notice of sale. However, Arizona law requires the borrower to receive a notice of trustee's sale at least 90 days before the sale date.

Nonjudicial foreclosure allows lenders to sell a property without going to court, which can save time and money. However, the process must follow specific procedures to protect the borrower's rights. The examples illustrate how nonjudicial foreclosure works in California and Arizona, where it is allowed if the deed of trust includes a power of sale clause. The lender must send notices and record documents to inform the borrower and the public about the foreclosure. If the borrower does not cure the default, the property can be sold at a public auction.