- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust,
Mortgage
- Timeline: Typically 90 days
- Right of Redemption: None
- Deficiency Judgments Allowed: Varies
In Oklahoma, lenders may foreclose on deeds of
trusts or mortgages in default using either a judicial or
non-judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which
involves filing a lawsuit to obtain a court order to foreclose, is
used when no power of sale is present in the mortgage or deed of
trust. Generally, after the court declares a foreclosure, your home
will be auctioned off to the highest bidder.
However, unless the borrower waives the right to
an appraisal in the mortgage, the property must be appraised before
it can be sold at foreclosure. At the foreclosure sale, the property
may not be sold for less than two-thirds of the appraised value.
A lender may sue to obtain a deficiency judgment,
but the action must be taken within ninety (90) days after the date
of sale. There can be no redemption once the court confirms the
foreclosure sale.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used
when a power of sale clause exists in a mortgage or deed of trust. A
"power of sale" clause is the clause in a deed of trust or mortgage,
in which the borrower pre-authorizes the sale of property to pay off
the balance on a loan in the event of the their default. In deeds of
trust or mortgages where a power of sale exists, the power given to
the lender to sell the property may be executed by the lender or
their representative, typically referred to as the trustee.
Regulations for this type of foreclosure process are outlined below
in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power
of sale clause and specifies the time, place and terms of sale, then
the specified procedure must be followed. Otherwise, the
non-judicial power of sale foreclosure is carried out as follows:
A written notice of intention to foreclose by
power of sale must be sent by certified mail to the borrower at the
borrower's last known address. The notice must describe the defaults
of the borrower under the loan, and give the borrower thirty five
(35) days from the date the notice is sent to cure the problem. If
the borrower cures the default within the thirty five (35) days,
then the foreclosure can be stopped. However, if there have been
three (3) defaults, then the lender need not send another notice of
intent to foreclose, and if the borrower has been in default four
(4) times in the past twenty four (24) months, and has been notified
as above, then no further notice will be required.
- The notice must be recorded in the county where
the property is located within ten (10) days after the borrower
has gone through the thirty five (35) day notice period.
- The notice must appear in a newspaper in the
county where the property is located once a day for four (4)
consecutive weeks, with the first publishing being not less than
thirty (30) days before the sale.
- Said notice must state the names of the
borrower and lender, describe the property (including the street
address) and state the time and place of sale.
- The property must be sold at public auction to
the highest bidder at the time and on the date specified in the
notice. If the highest bidder at the sale is anyone other than the
borrower, they must post cash or certified funds equal to ten (10)
percent of the bid amount. If the highest bidder is unable to do
so, then the lender may proceed with the sale and accept the next
highest bid.
More
information on Oklahoma foreclosure laws.
