Oklahoma Foreclosure Laws

A lender can satisfy borrower’s debt by pursuing a foreclosure governed under Oklahoma foreclosure laws.  Judicial and non-judicial foreclosures are administered in Oklahoma. Typical foreclosure timeline takes about 6 to 7 months. For judicial and non-judicial foreclosures, the borrower can stop the sale by providing a full payment of the debt owed to the lender at any time up until the date of the foreclosure sale.

Judicial And Non-Judicial Foreclosure Information

Non-judicial foreclosure is applicable when the borrower signed the Power of Sale clause in the mortgage loan. This means that the borrower is aware of the consequence once he or she fails to meet the terms in the contract signed. This provision in the loan document empowers the lender to pursue a foreclosure without court appearance. On the other hand, a judicial foreclosure applies when a Power of Sale clause is not signed by borrower. Under judicial foreclosure laws, the lender is required to file complaint against borrower in court.

Since initiating an out-of-court foreclosure does not require a court appearance, the lender is required to send a notice of intention to foreclose a property by virtue of power of sale to the defaulted borrower. This will serve as a warning to the borrower that there is an impending foreclosure on his or her property unless debt is cured by making a full payment of the defaulted loan. The borrower is given 20 days to respond to the notice and failure to do so would push the foreclosure sale.

Under the judicial process in an Oklahoma foreclosure, the lender has to file for a complaint known as lis pendens against the defaulted borrower in court. The court decides if the property in question will be sold in foreclosure sale. A lis pendens functions as a recorded document which provides a public notice that there is an impending foreclosure on a property. The defendant is given 20 days to respond to the lawsuit. Once the court finds sufficient evidence on the merit of the complaint and the borrower fails to satisfy debt, a foreclosure sale will be scheduled.

Oklahoma foreclosure laws do not allow after-sale statutory right of redemption. For other states who allow redemption, a person whose property has been foreclosed can reclaim the said property by providing a full payment of the defaulted loan plus any applicable costs or interest.

Lenders may claim for deficiency judgment when a property is sold for less than the amount of mortgage loan. Deficiency must be filed within 90 days after the auction. If deficiency is granted, the borrower has to pay for the difference between the amount of the property sold and the amount of the original loan.

Notice Of Sale Oklahoma

For 4 successive weeks, a Notice of Sale should be published daily in a local newspaper. Foreclosure sale is supervised by the Sheriff and resembles that of public auction where the property is auctioned off to the highest bidder.